Introduction to Accounting

Purposes

Identify users

Assess user's information needs

Design accounting information system to meet users' needs

Record economic data about business activities and events

Prepare accounting reports for users

Opportunities of accountants

Private accounting

employed by companies, government and not for profit entities

Public accounting

employed by auditing firms

Concepts

Business entity concept

limits the economic data in an accounting system to data related directly to the business activities

Cost concept

amounts are initially recorded in the accounting records at their cost of purchase price

objectivity concept

amounts recorded in the records should be based on objective evidence

unit of measure concept

economic data be recorded in the currency of the country

Accounting is an information system that provides reports to users about the economic activities and condition of a business.

Accounting is the "language of business"