Welcome to this series of lectures
which will introduce you
to accounting records
and accounting in business.
These sessions are designed
for non-accounting students
and commerce courses
no prior knowledge of accounting.
To help bring the subject to life,
we shall follow the journey
of a friend of mine, Sean,
who starts his business
operating a Festival Lemonade Stand
which then grows to a chain of shops.
We shall see how
Sean's accounting records need to change
as his business develops
and faces new challenges
which will require
more advanced methods of accounting.
So before we start Sean's journey,
let's begin with a session
that covers the definition of accounting
and a look at some key terminology
upon which accounting records are based.
Accounting is the collecting,
analyzing, and communicating
of financial information
to allow the users
to make informed decisions.
It's not just about preparing
regular financial or accounting records,
although that is admittedly
a key role of an accountant,
what the readers of the accounts
do with this information
is equally important.
If the accounting reports
don't assist in decision-making,
then there is little point
in preparing them.
So an accountant must ensure
that the methods used
to identify, measure,
economic information are useful.