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Flashcards in Unit 1 & 2 Deck (7)
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1

define transaction

and event occurring during the operation of the business which results in a financial change. It is an exchange of things

2

what is the purpose of accounting?

to provide financial information for decision-making

3

accounting standards are:

the principals, rules, and guidelines followed when preparing and presenting accounting information

4

a public company

is listed on the stock exchange and is accountable to the public

5

a private company

does not have shares in the market. it may be owned by one person or a small group of people. it is not accountable to the public

6

what standards govern:

public companies in Canada?

private companies?

a) international financial reporting standards (IFRS)

b) the accounting standards for private enterprises (ASPE)

7

what are four controls that encourage people to do the right thing in accounting are:

laws
business ethics
professional standards
accounting principles and standards