Accounting \u2013 business report for decision making.docx - Accounting business report for decision making Accounting is the process of identifying

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Accounting – business report for decision making Accounting is the process of identifying, measuring and communicating economic information about an entity to a variety of users for decision making purposes. Bookkeeping is simply the process of recording and summarising the financial transactions and the preparation of financial statements. Think of bookkeeping as part of the accounting process. Business transactions - External exchange of something of value between 2 or more entities - Affect assets, liabilities and equity - Can be reliably measured and recorded Relevant information - Information that makes a difference in decision making. Accounting information is designed to meet the needs of both internal and external users. - Internal users are: managers of the entity who use the information to assist in various managements functions. - External users (stakeholders) are parties outside the entity who use information to make decisions about the entity. Stakeholders can include: investors, customers, suppliers and banks, employees, government authorities.
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