Accounting

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Fundamentals of Accounting<3

ACCOUNTING

- The process of identifying, measuring, and communicating

- Service entry

- Quanti, Information, Financial

- Economic

- Art and Science

Financial statement <== Report

Identify - Transaction - Accountable Events

Measure- Php

Communicate - Financial Statement

Basic Financial Statement

Financial in nature

Measurable

Monetary Value

Accounting (MPC)

- An information system that

Measure business activities

Process information into reports

Communicates result to decision makers through FS.

ACCOUNTING PROCESS (IMC)

Identifying

Measuring informed judgments and decisions by user

Communicating

ACCOUNTING INFORMATION MUST

Help in making decision

Show result of how management operated the business (stewards)

Have predicted value

USERS OF ACCOUNTING INFORMATION

EXTERNAL - Make decisions concerning their relationship the business

INTERNAL - Make decision directly affecting the internal operations of the business

EXTERNAL USERS

INVESTORS

EMPLOYEES

LENDERS

SUPPLIERS AND OTHER TRADE CREDITORS

GOVERNMENT AND THEIR AGENCIES

CUSTOMERS

PUBLIC

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