Page 430 - Introduction to Business

404 PART 4 Accounting

Portfolio Projects

Exploring Your Own Case in Point Starting Your Own Business
In this chapter, the role of accounting is explained. After reading this chapter, you should have a basic
Accounting information is necessary for decision mak- understanding of the role of accounting. Even if you
ing by people within and outside a business firm. will be hiring someone to keep the books of your
Answering the questions below will help you better startup company, you will need to be able to speak
understand the role of accounting in your selected about accounting to people both inside and outside
company’s operations. your firm. Answer the following questions about
1. Who uses the financial accounting information accounting in your startup company.
produced by your company’s accounting depart- 1. Describe the objectives, inputs, processes, outputs,
ment? Who uses the management accounting and controls of the accounting system in your
information produced by your company’s account- startup company.
ing department? 2. What are some internal controls that your com-
2. What is the chief product or service associated pany will use to help ensure that company
with your company? What department in the com- resources are not stolen or wasted? What measures
pany produces the product or service? What type can you take to help prevent computer crime from
of accounting information does it need to do its being committed against your company?
job effectively?
3. What sorts of internal controls might your com-
pany use to ensure that company resources are not
stolen or wasted? Why are auditors interested in
internal controls?

Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.