BUSN1001 Lecture Notes - Lecture 1: Management Accounting, Transaction Processing, Aust
Document Summary
Accounting is the process of identifying, measuring and communicating economic information about an entity to a variety of users for decision making purposes. Transactions: exchanges of something of value between 2 or more entities, can be reliably measured and recorded. Accounting information is designed to meet the needs of both internal and external users (aka stakeholders). External users: parties outside the entity who use information to make decisions about the entity. Stakeholders can include: current and prospective shareholders, employees, including managers, banks, suppliers, customers / consumers, government authorities (e. g. ato and asic). Financial accounting: it involves the preparation and presentation of general purpose financial statements that allow various users to make economic decisions about the entity: old school required by law. General purpose financial statements: a set of statements directed towards the common information needs of a wide range of users (both internal and external): income statement, balance sheet, statement of cash flows, statement of changes in equity.
