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CHAPTER 1 Introduction to AccountingCLASS NOTES Topic 1

The ACCOUNTING Process

Identifying Measuring Counicating !ecision Ma"ing

Account

#usiness transactions

Accounting vs. Bookkeeping

Illustration

Ms$ Hi is a %oo""eeper and Mr$ He&&o is an accountant$ #ot' (or" for Le&eRecruitent Ltd$) an IT recruitent entity esta%&is'ed in Hanoi$ T'e entity*s 'eado+ce is in Hanoi and t'e entity 'as a %ranc' in HCM City$ Hi is a %oo""eeper ('o(or"s in t'e HCM City o+ce and He&&o is t'e 'ead accountant in t'e ain o+ce inHanoi$ ,'at do you t'in" are t'e duties of Hi- ,'at a%out He&&o-

Duties/Responsibilities i ello1 Prepare .nancia& reports$/ Super0ise acti0ities of t'e %oo""eeper$ Prepare and send in0oices to de%tors$

2 Assist in t'e preparation of %udgets$3 4pdate and anage t'e accounting syste

for t'e entity$5 Ca&cu&ate and distri%ute (ages and sa&aries$6 Print .nancia& report and de%tor &istings$7 Esta%&is' fund anageent arrangeent

(it' %an"s$8 Pro0ide assistance to anageent in

setting prices$

1 ACCT2105 Accounting for Organisations and Society | RMIT International University

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19 C'ec" custoer credit ratings$11 Recei0e in0oices fro supp&iers$1/ Prepare &ist of o0erdue accounts$1 Prepare %an" reconci&iations$

Accounting In!or"#tion #n$ its role in Decision %#king,'o uses accounting inforation to a"e .nancia& decisions-

Interna&

E:terna& ;

4SERS ,'at inforation do t'ey need to a"e decisions-

&in#nci#l Accounting vs. %#n#ge"ent Accounting

,'at is

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$= #a&ance S'eet >Stateent of

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