Set 1 Flashcards
(16 cards)
What does a ‘stakeholder’ refer to in accounting?
Any group or individual who can affect, or is affected by, the achievement of an organisation’s objectives.
List the three broad categories of performance that accounting can address.
- Financial performance
- Social performance
- Environmental performance
What are the fundamental qualitative characteristics of accounting information?
- Relevance
- Faithful Representation or Reliability
What is accountability in the context of accounting?
The obligation to render an account of actions an organisation is held responsible for.
Fill in the blank: Accounting is concerned with the collection, analysis, and _______ of financial information.
[communication]
What is the role of accounting in decision-making?
To assist users with making informed choices about issues such as resource allocation.
True or False: The type of information a stakeholder needs is the same for all stakeholders.
False
It depends on the decisions they want to make and their expectations.
What is the purpose of the Nuku platform in the course?
It serves as the central platform for all course information, updates, and materials.
Who are the guest lecturers in Week 1 and Week 2?
- Week 1: Nicola Lancaster
- Week 2: Perry Thomas
What is the expected outcome of performance in accounting?
The outcomes, impacts, or achievements associated with finishing a task or set of tasks.
What are enhancing qualitative characteristics of accounting information?
- Comparability
- Verifiability
- Understandability
- Timeliness
What should an organisation determine before reporting information?
Who the stakeholders are and what types of information they need or expect.
What types of reporting might an organisation consider?
- Financial statements
- Annual reports
- Social media
- Video
What is the responsibility of an accountant in relation to stakeholder information needs?
To determine what information is most appropriate to enable stakeholders to make informed decisions.
Fill in the blank: The more traditional role of accounting is providing _______ reports of transactions.
[accountability]
What is the importance of timely information in accounting?
Users should have access to it in time to make informed decisions.
