Tutorial 1 - Tutorial 1 1 Define accounting Explain the...

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Tutorial 1 1. Define accounting. Explain the stages involved in your answer. Accounting is the process of providing data/information to respective users to help them make business decisions. It involves collection, recording, summarizing and communicating financial information/data. 2. What is the difference between accounting and bookkeeping? Accounting Bookkeeping Collection, recording, summarizing, communicating Collecting and recording Deals with ledgers and Financial Statements Deal with source documents & Books of Prime Entry 3. What do you understand about the Accounting Equation? Assets = Liabilities + Equity For every change on the left side, there is an exactly equal and opposite change on the right side of the accounting equation. After every transaction has taken place, the Accounting Equation will still balance. 4. Discuss why accounting data must be classified and summarized. Following such classifications and summaries it will be possible to work out how much profit or loss has been made by the business during a particular period. It will also be possible to show what
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