Lecture Notes Week 1 Introduction to Accounting, Ethics, Business Entities, Financial Statements
Required Readings: HEM : Chapters 1 and 2 All required readings m ust be com pleted before attending class
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What is Accounting? The process of ________________________________and ___________ economic information to assist users to make _____________. Users of Accounting Information The users are internal and external decision makers. Internal: External: Management Accounting Providing information to management to help them ____, ______ and ____________. Users are ________. Financial Accounting Reporting information to ________users to help them make decisions about the entity’s __________ and ____________. The reports produced for the external users are known as General Purpose Financial Reports (GPFR) and include: Balance Sheet Income Statement Statement of Changes in Equity Statement of Cash Flows (not covered in Accounting 1A) The information in the GPFR must abide by accounting standards and are produced for a to ensure that accounting information is RELIABLE. Ethics Ethics is a system of Examples of unethical behaviour: -