Bman10621b - Study guides, Class notes & Summaries

What are some of the main reasons for accounting? - Record flow of money, help make decisions, provide basis for taxation, planning future activities & informing shareholders/agents What are key differences in management vs. financial accounting? - Nature of reports produced, level of detail, regulations, reporting interval, range and quality of information What are the 3 key qualities of accounting? - Relevance: Predictive value Confirmatory value

What are expenses? - Costs incurred in the process of generating revenue What is the difference between capital and revenue expenditure? - Capital expenditure provides benefits for more than one year, while revenue expenditure is for current year only What is the purpose of the Income Statement? - Measures financial performance (wealth) of a company over an accounting period