Accounting

Question 1

What is accounting

Answer 1

Accounting is the recording, summeriszing ,analyzing , interpreting and communicating of financial data / transaction.

Question 2

What is transaction

Answer 2

A transaction is an event (with a monetery value) recorded in the accounting system of a business.

Question 3

Principle of account

Answer 3

A set of rules concepts or guidelines used by accounting professionals in doing their jobs.

Question 4

GAAP

Answer 4

Generally accepted accounting principles : a collection of commonly fallowed accounting rules and standards for financial reporting.

Question 5

Purpose of accounting

Answer 5

The main purpose of accounting is to allow stakeholders/ users of accounting information to make infored decisions.

Question 6

What is Stakeholders

Answer 6

Persons who have an interest in the performance of a business.

Question 7

Users of accounting information

Answer 7

Internal users: persons directly connected to the business or work in the business.
External users: persons who are indirectly connected to the business but hava an interest in its performance.

Question 8

Eg. Internal users

Answer 8

Manager, owner, shareholder/investors employees

Question 9

Eg. External users

Answer 9

Government, suppliers, customers, financial institutions