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1.2: Accounting Defined

  • Page ID
    20066
    • Henry Dauderis and David Annand
    • Athabasca University via Lyryx Learning
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    learning objective

    1. Define accounting.

    Accounting is the process of identifying, measuring, recording, and communicating an organization's economic activities to users. Users need information for decision making. Internal users of accounting information work for the organization and are responsible for planning, organizing, and operating the entity. The area of accounting known as managerial accounting serves the decision-making needs of internal users. External users do not work for the organization and include investors, creditors, labour unions, and customers. Financial accounting is the area of accounting that focuses on external reporting and meeting the needs of external users. This book addresses financial accounting. Managerial accounting is covered in other books.


    1.2: Accounting Defined is shared under a CC BY-NC-SA license and was authored, remixed, and/or curated by Henry Dauderis and David Annand.

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