BMGT 220 Chapter Notes - Chapter 1: Net Income, Accounting Equation, Accounts Receivable

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 220
• Professor: Dr.Progyan Basu

Document Summary

Chapter one outline: nature of business and accounting. Business: organization in which basic resources (inputs) are assembled and processes to provide goods and services (outputs) to customers. Profit: the difference between the amounts received from customers for good or services and the amounts paid for the inputs used to provide the goods or services: types of businesses. Service businesses: provide services rather than products to customers. Merchandising business: sell products they purchase from other businesses. Manufacturing business: change basic inputs into products that are sold to customers: role of accounting in business. Accounting: an information system that provides reports to users about the economic activities and condition of a business. Managerial/management accounting: area of accounting that provides internal users with information. Objective: to provide relevant and timely information for managers and employees decision making needs. Private accounting: managerial accountant employed by a business. Objective: provide relevant and timely information for the decision making needs of users outside the business/