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Decision Making and the Role of Accounting
Wednesday, 30 July 2014
8:27 PM
•
Accounting: The language of business
• The decision-making progress
1. Decisions mean making choices.
--- We must choose how to spend our time
--- We must choose how to spend our resources
2. Decisions affect the future.
3. Good decisions require good processes.
• Steps in Decision Making
• Economic Decisions
1. Many decisions involve economic resources
2. Economic resources have a price as they are scarce
3. Must also consider:
---- Personal Taste
---- Social Factors
---- Environmental Factors
---- Religious and/ or Moral Factors
---- Government Policy
4. The Nature of Accounting
i. Accounting is a service activity
---- Its function is to provide and interpret financial information to aid decision making
ii. Accounting is used in a range of organisations
---- Business
---- Government
---- Charities
---- Not-for-profits
5. The Accounting Process
Week 1 Lecture Note Page 1
6. Users of Accounting Information
7. Financial Reports and Users
8. Accounting Information and Decisions
i. Many decisions require significant amount of financial information
---- Accounting information is very important
ii. Accountants report on the past
---- Still useful for making decisions about the future
---- Also useful for assessing past decisions
iii. Accountants also look to the future
Week 1 Lecture Note Page 2
iii. Accountants also look to the future
---- Budgeting; Strategy and Planning
9. Management and Financial Accounting
10. Accounting as a Profession--- Australian Perspective
i. Self-regulated profession
ii. Two major professional association
---- CPA Australia
---- Institute of Chartered Accountants Australia (ICAA)
11. Public Accounting
i. Accountants who offer their professional services to the public for a fee
ii. Four main areas with many specialties
---- Auditing and Assurance Services
---- Taxation Services...