Lecture 1 Flashcards
1
Q
Do accountants follow legal regulations?
A
No
2
Q
What do accountants follow?
A
Principles & standards
(IFRS, IAS, IFRIC, SIC)
3
Q
What is double entry bookkeeping all about?
A
Dual effect
4
Q
Who are the 10 users of financial information?
A
Owners
Competitors
Employees
Suppliers
Customers
Managers
Lenders
Government
Investment analyst
Community representatives
5
Q
What is the flow of the accounting information system?
A
Information identification
Information recording
Information analysis
Information reporting
6
Q
What are the major differences between financial & management accounting?
A
- The nature of the reports produced
- the level of detail
- the existence of regulations
- reporting interval
- time orientation
- range & quality of information
7
Q
What are the reasons for the changing business environment?
A
- increasing customer sophistication
- development of global economy
- rapid changes in technology
- deregulation of domestic markets
- increasing pressure from owners
- increasing volatility of financial markets
8
Q
What are the 3 forms of business ownership?
A
Sole proprietorship
Partnership
Limited company (LLC)
