Tag: Chapter 1

Accounting provides information about the business activities to users for their use in decision making. Information provided by accounting helps users make informed decisions about

Accounting information is used by external users and internal users. External users include investors, creditors, customers, suppliers, employees and government. Internal users include the management,

Financial accounting information is reported in accordance with the accounting standards. The accounting standards represent a set of principles generally accepted by the accounting profession

The Conceptual Framework for Financial Reporting jointly issued by the IASB and FASB defines the relevance and faithful representation as the primary characteristics of useful

Financial statements are prepared based on the following underlying assumptions: Economic entity assumption Business operations can be reported for an entity which is separate from

Accounting information is communicated in the form of financial statements. Financial statements include the following: Balance Sheet (Statement of Financial Position) Income Statement (Statement of