chap 1

Question 1

state two stakeholders of a business and explain the type of decision they need to make

Answer 1

employees - whether to continue working for the business
suppliers - whether to sell to the business on credit

Question 2

state examples of accounting info needed by stakeholders of a business for decision making

Answer 2

cost of inventory, cash discount and gross profit margin

Question 3

state examples of non-accounting info needed by owners and managers of a business for decision making

Answer 3

the economic outlook, customer’s history of repayment, and the return policy of inventory bought

Question 4

state the 2 roles of accountants

Answer 4

stewardship and decision making

Question 5

define integrity

Answer 5

straightforward and honest in all professional relationships

Question 6

define being objective/objectivity

Answer 6

not let bias, conflict of interest or the undue influence of others override his or her professional judgement