Accounting Week 1

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Accounting Week 1
2015-07-26 00:01:59
Chapters 1,3 & 13
Show Answers:

  1. What is the term used for the provision of accounting information within a business entity?

    Pg 4
    Management accounting.
  2. What is the term used for the preparation and presentation of accounting information for external users?

    Pg 4
    Financial accounting.
  3. 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.
  4. What is the primary function of accounting?

    Pg 5
    To provide reliable and relevant financial information for internal and external decision making.
  5. What is the accounting process?

    Pg 5
    The process of identifying, measuring, recording and communicating economic transactions and events of a business operation.
  6. WRT the accounting process, explain identifying?

    Pg 5
    The process of determining economic events (financial transactions) affect the business entity.
  7. WRT the accounting process, explain measuring?

    Pg 5
    The process of quantifying transactions in monetary terms.
  8. WRT the accounting process, explain recording?

    Pg 5
    The process of analysing, recording, classifying and summarising a business' transactions.
  9. 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.
  10. WRT the accounting process, explain communicating?

    Pg 5
    Preparing accounting reports for analysis and interpretation for users.