BSNS115: Accounting and Information Systems Flashcards
What is accounting?
Prices of identifying, measuring and communicating economic information about an entity to a variety of users for decision making purposes
What are business trnasactions?
The external exchange of something of value between 2 or more entities and affects assets, liabilities and equity which can be reliably measured and recorded
What are internal users?
Accounting information is extremely valuable to an entity owner or management
What are external users? (stakeholders)
Are parties outside the entity who use info to make decisions about the entity
What is financial accounting?
The preparation and presentation fo financial statements
Allows users to make economic decision about the entity
Both internal and external
What is management accounting?
Economic info for internal users
reflected in financial accounting statements for external users
predominantly about planning and decision making for future events
What is management accounting?
What is the role of professional bodies?
Play an important role in regulating NZ companies through:
stringent regulation fo their members
and
their input into the standard setting process
What are the main financial statements?
Statement of cash flows
Statement of comprehensive income
Statement of changes in equity
Statement of financial position
What is the statement of cash flows?
Shows the sources and uses of cash for a period
What is the statement of comprehensive income?
Referred to as income statement or profit and loss statement
Measures and reports how much profit has been generated in a period
What is the statement of changes in equity?
Shows all the changes in owners interest in the net assets from transactions during the period
What is the statement of financial position?
Commonly knowns as the balance sheet
Shows the assets of business and claims on those assets
What are assets?
Resources controlled by entity
What are liabilities?
External sources of funds
