Accounting Information and Management Decision Making in Business

Accounting Information and Management Decision Making in Business

There are certain basic concepts of accounting which will be described one by one below:-

  • Accounting Entity concept: Accounting entity concept is reflected by the accounting equation: assets = liabilities or assets = Liabilities + owner’s equity. Meigs says.
  • Accounting information is complied for a clearly defined accounting entity. So is a business enterprise, whether conducted as a single proprietorship, partnership or corporation.

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Accounting – Nature and Scope of Accounting

Accounting  – Nature and Scope of Accounting

          Accounting as a financial system has many definitions as there are many authors in the field.  However, these definitions seem to have a common thread linking them together. According to Donald (1992:2) accounting is defined as the process of identifying, measuring, recording and communication of the economic events of an organization to interested users of the information.  [Read more…]