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Flashcards in Unit 1 & 2 Deck (7)
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define transaction

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


what is the purpose of accounting?

to provide financial information for decision-making


accounting standards are:

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


a public company

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


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


what standards govern:

public companies in Canada?

private companies?

a) international financial reporting standards (IFRS)

b) the accounting standards for private enterprises (ASPE)


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

business ethics
professional standards
accounting principles and standards