Topic 2. Accounting decisions

A collection of vocabulary flashcards based on the lecture notes for ACCT10001 Accounting Reports and Analysis.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Investing Decisions

Decisions related to the allocation of funds into assets with the expectation of generating income or profit.

Operating Decisions

Decisions concerned with the day-to-day operations of a business, including pricing and resource management.

Financing Decisions

Decisions regarding the funding of a business’s activities through debt, equity, or other financial instruments.

Stakeholders

Individuals or groups that have an interest or investment in the business, including owners, employees, customers, suppliers, and the public.

Economic Characteristics

Attributes that influence decision types, including risk, return, and the time factor.

Management

The organization and coordination of the activities of a business to achieve defined objectives.

Creditors

Stakeholders who lend money to the company and are concerned primarily with repayment and solvency.

Owners and Shareholders

Individuals or entities that own equity in a company and are concerned with returns on investment and company performance.

Regulators

Government agencies that oversee and enforce laws and regulations to protect public interests.

Customers

Individuals or businesses that purchase goods or services from a company and are concerned with value and quality.

Suppliers

Businesses that provide products or services to a company, whose main concern is being paid and ensuring customer solvency.

Public Goods

Resources or services that are provided to all members of a society, which regulators aim to protect.