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5 Cards in this Set
- Front
- Back
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Why is accounting important? |
System that identifies, records and communicates economic events to users Beneficial for: World economy Business endeavours Foundation for other business disciplines Relevant and useful in other disciplines |
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Using accounting information for internal users |
-Used for planning, organizing and running companies -Includes finance, marketing, human resources, production, company officers |
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Using accounting information, who are external users? |
Investors, creditors, labour unions, customers, regulators
Used for decisions of ownership, credit, lending, asses compliance, performance |
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Objective of financial reporting |
Accounting info is communicated to external users via financial statements
Main objective of financial statements is to provide useful info to investors and creditors so they can make an informed decision about a business |
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Business organizations |
Proprietorship: Proprietor - one |
