ACCT1501 Study Guide - Midterm Guide: Corporations Act 2001, Floating Charge, Risk Assessment
Document Summary
The basic purpose of financial accounting is to produce useful info which is used in many and varied ways. People use the info generated by financial accounting to improve their decision-making in allocating scarce resources. Accounting is a process of identifying, measuring and communicating economic information to allow informed decisions by the users of that information. Financial accounting periodic financial statements to external decision makers (investors, creditors) Management accounting information for planning and performance reports (internal decision makers) Financial performance generating new resources from day-to-day operations over a period of time. Financial position the enterprise s set of financial resources and obligations at a point in time. Financial statements reports describing financial performance and position. Notes part of the statements, adding explanations to numbers. Accounting is not a passive force within the social setting it tells us what is going on, and in doing so, affects decision making. Main participants: information users, information preparers, auditors.
