introduction to accounting Chapter 1 Flashcards
what is a trading business
trading business buys from suppliers and sell to customers.
what is a service business
service business provides service to its customers.
what is a role of an accounting
the role of accounting is to provide accounting information for stakeholders to make informed decisions
what is the role of accountants
the role of an accountant is to prepare and provide accounting information for informed decision making. they set up an accounting information system ( AIS ) and become stewards of the business.
what is an professional ethics
an ethical accountant has integrity and is objective. He or she will not mislead users into making poor decisions.
What is the difference between trading business and service business?
Trading business buys from supplier and sells to customers but service business provide service to the business
What are the Owners and shareholders interaction between the business.
Contribute capital to the business and expect profit distribution in return.
What are the managers interaction between the business.
Work for the business and devise strategic plans to run the business efficiently
What are the employers interaction between the business?
Work for the business and perform executive duties.
What are the lenders interaction between the business?
Make money and available to the business and expect it to be fully repaid with interest.
What are supplier interactions between the business
Supply goods and or service to the business.
What are the customers interaction with the business
Buy goods and/or service from the business
What are the government interaction with the business?
Enforce tax regulations
What are the competitors interaction with the business.
Sell similar goods and /or service as the business.
Who are the stakeholders
Employers, CustomersGovernment,Supplier,Competitors,Owners and Shareholders and Managers.
