ACCOUNTING
- decision-making
- recording
- interpreting
- summarizing
- reasoned choices
- classifying
- service activity
- economic entities
- quantitative info.
Accounting is a service activity. Its function is to provide quantitative information, primarily financial
in nature, about economic entities that is intended to be useful in making economic decision, in
making reasoned choices among alternative course of action.
Accounting is analysis and interpretation of financial information, conduct of audits and preparation
of financial statements.
Bookkeeping is the routine recording of economic activities. It is a mechanical process.
USERS OF ACCOUNTING INFORMATION
- Internal - owners, managers
- External - prospective owners, creditors, government, employees, customers, general public.
Financial Accounting - reporting meant for the external users of accounting information.
Management Accounting - reporting meant for the internal users of accounting information.
Cost Accounting - meant for use of both external and internal users.