Principles of Accounting I.docx - Principles of Accounting...

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Principles of Accounting IStudy GuideChapter 1-2Define Accounting:Accountingis a system that measures…1.The business activities in financial terms2.Provides written reports and financial statements about those activities3.Communicates these reports to decision makers and others. (Reported to businessmanagers, owners, creditors, governmental units, financial analysts, employees,etc.)This accounting process performs the following functions:Analyzing:Looking at what happened and how the business was affected.Recording:Putting the information into the accounting system.Classifying:Grouping all the same activities (e.g., all purchases) together.Summarizing:Totaling the results.Reporting:Issuing the statements that tell results of the pervious functions.Interpreting:Examining the statements to determine how the various pieces ofinformation they contain relate to each other.

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Term
Fall
Professor
N/A
Tags
Managerial Accounting, International Financial Reporting Standards, Financial Accounting Standards Board, Accounting standards Board

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