The American Accounting Association defines accounting as “the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.”
Accounting involves two main elements: (1) an information process summarizing financial events; and (2) a reporting system that communicates financial information to interested parties.
Double-entry bookkeeping first emerged in Northern Italy in the 14th century, where trading ventures began to require transactions that involved more than one investor.
Management (or internal) accounting and financial (or external) accounting are generally the two key branches of accounting.
Management accounting provides relevant and useful information to people inside the business, such as employees, managers, owners and auditors. It provides information for decision making and company strategy.
Financial accounting, on the other hand, also provides information to people outside the business, such as investors, regulators, analysts, economists, and government agencies.
Key Terms
double-entry bookkeeping: A method of bookkeeping in which each transaction must have at least one debit and one credit.
Financial statements: Standardized documents that include the financial information of a person, company, government, or organization; this information is used to make financial decisions.
stakeholders: People outside of a company who have a special interest in the company. Some examples are suppliers, customers, and the community.
accounting: The process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information. (definition by the American Accounting Association)
Using Accounting Information
The American Accounting Association defines accounting as “the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.” In other words, it is the process of communicating financial information about a business entity to stakeholders and managers. Economic information is generally displayed in the form of financial statements that show the economic resources that a business currently has; the goal of the business is to determine which information is useful to the outside world.
Answers & Comments
Answer:
Key Points
The American Accounting Association defines accounting as “the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.”
Accounting involves two main elements: (1) an information process summarizing financial events; and (2) a reporting system that communicates financial information to interested parties.
Double-entry bookkeeping first emerged in Northern Italy in the 14th century, where trading ventures began to require transactions that involved more than one investor.
Management (or internal) accounting and financial (or external) accounting are generally the two key branches of accounting.
Management accounting provides relevant and useful information to people inside the business, such as employees, managers, owners and auditors. It provides information for decision making and company strategy.
Financial accounting, on the other hand, also provides information to people outside the business, such as investors, regulators, analysts, economists, and government agencies.
Key Terms
double-entry bookkeeping: A method of bookkeeping in which each transaction must have at least one debit and one credit.
Financial statements: Standardized documents that include the financial information of a person, company, government, or organization; this information is used to make financial decisions.
stakeholders: People outside of a company who have a special interest in the company. Some examples are suppliers, customers, and the community.
accounting: The process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information. (definition by the American Accounting Association)
Using Accounting Information
The American Accounting Association defines accounting as “the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.” In other words, it is the process of communicating financial information about a business entity to stakeholders and managers. Economic information is generally displayed in the form of financial statements that show the economic resources that a business currently has; the goal of the business is to determine which information is useful to the outside world.
Explanation:
pa brainliest ty
aral ma buti