Management those responsible for operating the

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Unformatted text preview: : those responsible for operating the business, meeting profitability and liquidity goals • Direct financial interest: Depend on accounting information to report on how the business has performed, as an indicator of how it will do in the future. (Investors and Creditors) • Indirect financial interest: Depend on accounting information to help make decisions on public issues (tax authorities, regulatory agencies, financial advisors, lawyers, customers, suppliers, etc) Accounting Measurement: • Business transactions: economic events that directly affect the financial position of a business entity • Recorded in accordance with GAAP (Generally Accepted Accounting Principles) • All transactions recorded in terms of money (monetary unit principle) Business is a separate entity that is distinct and separate from its owners, creditors and • customers (economic entity concept) Processing Accounting Information: The accounting equation: Assets = Liabilities + Owner's Eq...
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