Loading
Previous Topic Previous slide Next slide Next Topic

Understanding and using accounting information - example

  • Study Reminders

    Set your study reminders

    We'll email you at these times to remind you to study

    You can set up to 7 reminders per week

    You're all set

    We'll email you at these times to remind you to study

    Monday

    -

    7am

    +

    Tuesday

    -

    7am

    +

    Wednesday

    -

    7am

    +

    Thursday

    -

    7am

    +

    Friday

    -

    7am

    +

    Saturday

    -

    7am

    +

    Sunday

    -

    7am

    +
  • Study Notes
  • Discuss This Topic
    Gabriel O.
    ML
    Gabriel O.

    Transactions and events must be accounted for and presented in the financial statements in a manner that is easily understandable by a user who possesses a reasonable level of knowledge of the business, economic activities and accounting in general provided that such a user is willing to study the information with reasonable diligence. Understandability of the information contained in financial statements is essential for its relevance to the users. If the accounting treatments involved and the associated disclosures and presentational aspects are too complex for a user to understand despite having adequate knowledge of the entity and accountancy in general, then this would undermine the reliability of the whole financial statements because users will be forced to base their economic decisions on undependable information

    Wendy C.
    AU
    Wendy C.

    Depending on the use of the information it can be represented a variety of different ways therefore the understanding of the accounting principles are imperative.

    Samuel F.
    ZA
    Samuel F.

    Transactions and events must be accounted for and presented in the financial statements in a manner that is easily understandable by a user who possesses a reasonable level of knowledge of the business, economic activities and accounting in general provided that such a user is willing to study the information with reasonable diligence. Understandability of the information contained in financial statements is essential for its relevance to the users. If the accounting treatments involved and the associated disclosures and presentational aspects are too complex for a user to understand despite having adequate knowledge of the entity and accountancy in general, then this would undermine the reliability of the whole financial statements because users will be forced to base their economic decisions on undependable information.

    Harrison A.
    AT
    Harrison A.

    Understanding and using of accounting information in firms or business organisations are quite essential,therefore when a transactions are made , documents are produced . Most of the time,these documents are external to the business , however,they can also be internal documents ,such as inter office sales .These documents are referred to as a source document .These source documents are then recorded in a Journnal and this journal is also known as a book of first entry .T he journal records bothe side of the transaction recorded by the source document.Account information give a run down of all financial activities that took place within a firm or business organisation .

    Harrison A.
    AT
    Harrison A.

    Is there any accounting principle that is irrelevant ?

    Zachary B.
    US
    Zachary B.

    What is an example of understanding and using accounting information?

    Zachary B.
    US
    Zachary B.

    What are some different methods of accounting information?

    Diamond T.
    US
    Diamond T.

    Transactions and events must be accounted for and presented in the financial statements in a manner that is easily understandable by a user who possesses a reasonable level of knowledge of the business, economic activities and accounting in general provided that such a user is willing to study the information with reasonable diligence. Understandability of the information contained in financial statements is essential for its relevance to the users. If the accounting treatments involved and the associated disclosures and presentational aspects are too complex for a user to understand despite having adequate knowledge of the entity and accountancy in general, then this would undermine the reliability of the whole financial statements because users will be forced to base their economic decisions on undependable information.

    Douglas R.
    US
    Douglas R.

    Budgets change.

    Ardian R.
    flag-default-icon
    Ardian R.

    Understanding your figures or financial literacy is an essential skill for a successful small business owner it is important that you understand and can analyse the financial statements of your business so you can manage and control your finances and make more informed decisions armed with facts, not intuition.

  • Text Version
Notification

You have received a new notification

Click here to view them all