Introduction to Accounting I This course is divided into three modules. Readers should note that some topics that have been traditionally covered in the second course, like cost-volume-profit analysis and performance evaluation, are introduced in the first course. The decision problem drives the accounting information that must be learned in order to make a competent decision. Module 1, "The Role of Accounting in Personal and Simple Business Economic Decisions," is designed to provide an introduction to several foundation concepts, including the nature of organizations, scarcity of resources, elements of decision-making processes, role of information, and ethical considerations. The module also begins the study of a simple business and the role of accounting information in starting and operating a small service business. The decision context in which these concepts are examined involves a student, John Miller, who is faced with two major questions: Should John start a summer painting business? Having launched the business, how well did he do? Module 2, "The Role of Accounting in Expanding and Evaluating a Small Service Business," introduces concepts involved in business planning, including organizational forms and tax considerations. Planning tools are examined involving cost behavior analysis and cost, volume, profit analysis. The module ends with a brief introduction to performance evaluation involving a comparison of a company's planned to actual results and a determination of variances from plan. Two different decision contexts are used in this module to explore ideas: Should an investor start a small business? This decision is addressed by each group. It involves library research, visits to local businesses, and group oral presentations. Should John Miller add an interior decorating component to his painting business? This decision represents a continuation of the "John the Painter" case introduced in the first module. The third module is entitled, "The Role of Accounting in Purchasing and Operating a Small Retail Merchandise Business." Module 3 considers decisions that have long term consequences and require explicit consideration of the time value of money. This module examines accounts receivable, inventory, and long lived assets, and the use of long-term liabilities to finance those assets. Valuation issues associated with each type of asset are also examined. The decision context that is the focus of this module involves a continuation of the "John the Painter" case. The key decisions for John and Joanna are: Should they expand their existing business by purchasing a retail store? What alternative forms of business organization should they consider? How should they finance the purchase? Home | Overview | Introduction | Motivation for Change Structure of the New Courses | Obstacles | Resources | Outcome Measures Reaction of Interested Parties | Recommendations for Interested Parties | Links | Index