BUS 251 Chapter 1: Chapter#1.docx
2 May 2014
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What is accounting and why does it matter? organizing that data to produce useful information about the entity, and communicating that information to people who want to use it to make decisions: entity person. accounting system. decision making by stakeholders. are raw, unprocessed facts about an entity"s economic activity that are entered into an is an economic unit of some kind, such as business, university, government, or even a results from organizing and presenting the data in ways that make it useful for, information, data, difference between bookkeeping and accounting, economic consequences: Accounting involves the design and management of information systems, how to account for and report an entity"s economic activity, and the analysis and interpretation of financial information. make. action only if the benefits are larger. comparing the benefits of an action with its costs, and of taking the it affects people"s wealth and it can have an impact on the decisions they: the cost benefit trade off:
