Describe the relationship among the accounting process


1. What do we mean when we say that accounting is a means rather than an end?

2. Accounting is sometimes described as the language of business. What is meant by this description?

3. What kinds of organizations, in addition to businesses, use accounting information?

4. What is the primary distinction between financial accounting and other accounting?

5. Describe the relationship among the accounting process, accounting information, decision makers, and economic activities.

6. What is an accounting system, and what is the primary objective of such a system?

7. What do we mean when we say that an accounting system needs to be cost-effective?

8. What are the three basic functions of every accounting system?

9. Who designs and installs accounting systems?

10.Generally describe and give several examples of external users of accounting information.

11. What are the two primary external groups to which financial accounting information is directed?

12. What do we mean when we say that investors and creditors are interested in a company's cash flow prospects?

13. When you invest your savings in a company, what is the difference between the return on your investment and the return of your investment?

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Accounting Basics: Describe the relationship among the accounting process
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