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![](/i/favi32.png) Financial Accounting for Decision MakersKEY TERMS
For definitions of these terms, see at the
back of the book, starting on page 514.
accountingfinancial-accounting-for-decision-makers-ninthnbsped-9781292251356-1292251352 compressKEY TERMS
For definitions of these terms, see at the
back of the book, starting on page 514.
accounting
p. 2
shares
p. 5
relevance
p. 6
faithful representation
p. 6
materiality
p. 6
comparability
p. 8
verifiability
p. 8
timeliness
p. 8
understandability
p. 8
accounting information system
p. 12
management accounting
p. 13
financial accounting
p. 13
conventions of accounting
p. 16
sole proprietorship
p. 19
partnership
p. 20
limited company
p. 21
Solutions to these questions can be found at the back of the book, starting on page 536.
1.1
Accounting is sometimes described as ‘the language of business’. Why do you think this
is the case? Is this an apt description of accounting?
1.2
Identify the main users of accounting information for a university. For what purposes
would different user groups need information? Is there a major difference in the ways in
which accounting information for a university would be used compared with that of a
private-sector business?
1.3
‘Not-for-profit organisations are not interested in making a profit.’ Is this statement true?
Does accounting and finance have a less important role to play in not-for-profit organisa-
tions than for businesses?
1.4
Financial accounting statements tend to reflect past events. In view of this, how can they
be of any assistance to a user in making a decision when decisions, by their very nature,
can only be made about future actions?
CRITICAL REVIEW QUESTIONS
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CHAPTER 1
INTRODUCTION TO ACCOUNTING
M01 Atrill's Financial Accounting For Decis 51257.indd 32
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Chapter
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