Introduction to Accounting

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What is accounting?

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Accounting is the process of recording, summarising, reporting, analysing, and interpreting financial information of an organisation.

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What is the role of accounting in decision-making?

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Accounting provides relevant and timely financial information to stakeholders so they can make informed decisions regarding the management of resources and performance.

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What do accountants do?

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Accountants act as stewards of businesses, managing the business on behalf of the owners and providing accounting information for decision-making.

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What is integrity in professional ethics?

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Integrity means being straightforward and honest in all professional and business relationships.

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What does objectivity mean in accounting?

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Objectivity means being unbiased when making professional judgments in the accounting process.

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What are some examples of accounting information?

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Examples include income and profit, cash and assets, liabilities, and return on equity.

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What are some examples of non-accounting information?

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Examples include economic outlook and market trends.

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What is income in accounting?

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Income is the amount earned from the activities by the business.

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What is revenue?

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Revenue is the value of a business’s sales of goods or services.

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What is profit?

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Profit is the difference between a business’s income and expenses.