ACTG 2010 Chapter Notes - Chapter 1-4, 6-7, 12: International Financial Reporting Standards, Cash Cash, Legal Personality
10 Dec 2016
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Document Summary
What is accounting and why is it done. It"s almost impossible to make good business decisions without relevant accounting info. It can be very relevant to personal decisions people make in their day-to-day lives. Accounting: a system gathers data processes and organizes data into information communicates the information to decision makers. Entity: an economic unit of some kind, such as a business, university, government, or even a person. Data: raw, unprocessed facts about an entity"s economic activity that are entered into an accounting system. Information: results from organizing and presenting the data in ways that make it useful for decision making by stakeholders. Bookkeeping: the process of recording financial transactions and maintaining financial records. It has economic consequences (it affects people"s wealth) and it can have an impact on the decisions they make. More and better information allows for better decisions. Without information, a decision is nothing more than a guess.
