ACC 110 Lecture Notes - Canada Business Corporations Act, Organize, External Auditor
Document Summary
It is a system for gathering data about an entity"s economic activity, processing and organizing that data to produce useful info about the entity and communicating that info to ppl who want to use it to make decisions. Entity: is am economic unit of some kind such as a business, uni, gov"t, or a person. Note * data are raw and unprocessed facts about an entity"s economic activity that is entered to an accounting system****** information is produced from. Organizing and presenting the data in ways that make it useful for decision making by stakeholders. Gather data -----------> process and organize data -------------> communicate info. Through this process, an accountant or a manager must make any decisions regarding what data to collect and how it should be organized. Financial accounting: provides info to ppl who are external to an entity------ like lenders, taxation authorities, competitors, cra, etc. These ppl usually rely on the entity to provide them with the info.