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Introduction to accounting records and accounts

Published on May 29, 2017   15 min
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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 undertaking business and commerce courses and assumes 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.
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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 and concepts upon which accounting records are based.
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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, and communicate economic information are useful.
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Introduction to accounting records and accounts

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