WA1

what is the role of accounting

to provide accounting information system for decision-making by stakeholders on the management of resources and performance of business

what is the role of accountants

act as stewards to set up the accounting information system for decision-making

what does owner and shareholders do

whether to continue to invest or sell the business

what does managers do

consider ways to improve on the business performance

what does lenders do

decides whether to grant loans to business

what does suppliers do

supply goods/services to business

what does government do

enforce tax regulations

what does competitors do

sell similar goods/services as business

what are the professional ethics

integrity and objectivity

meaning of integrity

to be straightforward and honest for all professional and business relationship

meaning of objectivity

will not allow biases, conflict of interest and undue of influence to override the professional judgment

define monetary theory and cash/credit transaction

records all business activities in monetary terms

cash transaction: pay immediately

credit transaction: pay later

define accounting theory

separates actions from owner and only transaction related to business is recorded.