Premium Essay

Financial Accounting & Reporting

In: Business and Management

Submitted By Amali
Words 415
Pages 2
Link Between
Business and Accounting
Dr. Namasivayam
Lecture 1



Define accounting & explain why accounting information is important.


Identify users of accounting information.


Explain the contents of the 3 basic financial statements. 3.

Explain the relationship between accounting equation and the balance sheet.


Analyse business transactions using the accounting equation.
Lecture 1


It is the way business people set goals, measure results, evaluate performance, and communicate results to various users.

Lecture 1



Lecture 1


• Managers
• Potential buyers
• Trade creditors
• Employees
• Customers
• Tax inspectors

• Business owners
• Potential partners
• Bank institutions
• Competitors
• Auditors
• Society
Lecture 1


You as user of accounting information:

Identify several ways in which you currently use accounting information in your life as a student or individual. ii.

Identify several situations in which you might be required to supply financial information about yourself to others.

Lecture 1


A quantitative report which describes the financial health of a business.
This includes:
An Income Statement;
A Balance Sheet;
A Cash Flow Statement.

Lecture 1



Resources OWED


Owners Equity (Capital)


Lecture 1


Accounting Standards &
Financial Reporting Standards. o Late 1960s – problems in lack of uniformity in accounting practice. o Accounting bodies formed Accounting
Standards Committee (ASC) which issued accounting standards called Statements of…...

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