ACTG 2010 Chapter Notes - Chapter 1: Legal Personality, Bookkeeping, Canadian Business
28 May 2011
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Document Summary
2 subfields: financial accounting provides information to people external to entity, managerial accounting addresses the information needs & decisions of the managers of the entity. Entity an economic unit, such as an individual, proprietorship, government, not-for- profit organization etc. In an accounting environment, an entity is an economic unit that a stakeholder wants accounting information about: provide accounting information stakeholder need, reports must be tailored to suit entity"s accounting environment. Data v information: data raw, unprocessed facts about an entity"s economic activity, entered in accounting system. Information results from organizing & presenting data. Economic consequences (for stakeholders) the effect of actions and decisions on. Cost-benefit trade off the concept of comparing the benefits of an action with the costs of the action, and taking action only if the benefits exceed the costs: relates to information collection. 4 key components: affects how entity will and should account for economic activity, environment.
