AC4001 Week 01 Lecture 02: Accounting as Language of Business PDF
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Uploaded by Business Student123_
University of Limerick
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Summary
This document provides an overview of financial accounting concepts, including the process of designing an information system for recording business transactions. It also explains the concept of a business entity and its relationship to the owner, differentiating between business and personal activities.
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AC4001 Week 01 Lecture 02: Accounting as Language of Business FINANCIAL ACCOUNTING Process of designing and operating an information system for collecting, measuring and recording enterprise transactions, and summarizing and communicating the result of these transactions to users to fac...
AC4001 Week 01 Lecture 02: Accounting as Language of Business FINANCIAL ACCOUNTING Process of designing and operating an information system for collecting, measuring and recording enterprise transactions, and summarizing and communicating the result of these transactions to users to facilitate making financial/economic decisions THE ENTITY The books of the business are separate from the books of the owner The owner owns the business and is responsible for it SEPERATE business and personal activities CASH = ASSET but when invested it is called CAPITAL ACCOUNTING EQUATION: ASSET = CAPITAL ASSET= LIABILITY + CAPITAL
