ACC 100 Lecture Notes - Lecture 2: Institute Of Environmental Sciences And Technology, Step One, Double-Entry Bookkeeping System
1 Feb 2017
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Document Summary
Chapter 2: the accounting equation and transaction analysis. Financial data is the businesses activities that they are involved in every day. The problem with financial data is that it is not financial information. The difference is that financial information is the end product of data processing. After the data has been categorized, anaylzed and formatted for presentation purposes it becomes the information that is used for decision making. A university collects data on all students applying to its programs. They have plenty of raw data including names, addresses, date of birth, age, gender, nationality, previous secondary institution, secondary courses taken and grades received. They also have information based on the students that are currently enrolled and who have previously graduated at the university. All this information is useless towards decision making until it is processed. Once the information has been categorized, analyzed, and formatted, the data becomes information that can be used for decision making.
