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What is the term used for the provision of accounting information within a business entity?
Pg 4
Management accounting.
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What is the term used for the preparation and presentation of accounting information for external users?
Pg 4
Financial accounting.
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What 3 items can accounting information help a user understand about a business entity?
Pg 4
- 1) Its past performance.
- 2) Its current financial position.
- 3) Some insight into its future prospects.
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What is the primary function of accounting?
Pg 5
To provide reliable and relevant financial information for internal and external decision making.
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What is the accounting process?
Pg 5
The process of identifying, measuring, recording and communicating economic transactions and events of a business operation.
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WRT the accounting process, explain identifying?
Pg 5
The process of determining economic events (financial transactions) affect the business entity.
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WRT the accounting process, explain measuring?
Pg 5
The process of quantifying transactions in monetary terms.
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WRT the accounting process, explain recording?
Pg 5
The process of analysing, recording, classifying and summarising a business' transactions.
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WRT the accounting process and recording, explain classifying and summarising?
Pg 5
Classification - the classification of a business' transactions into meaningful groups and categories.
Summarising - allows classified economic data to be presented in financial reports.
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WRT the accounting process, explain communicating?
Pg 5
Preparing accounting reports for analysis and interpretation for users.
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