The Accounting Environment: What is Accounting and Why is it Done?
The Accounting Environment: What is Accounting and Why is it Done?
Chapter 1 of the text states that accounting is full of mystery and intrigue. Surprising as it may seem, accounting is a subject that requires judgment, analysis, interpretation, and even intuition to make the most of it. Numbers in financial statements cannot simply be taken at face value. Financial Accounting: A Critical Approach was written to introduce you to some of the mystery and intrigue of accounting and help you learn to use accounting information effectively. Chapter 1 starts the journey by introducing some of the context of accounting. To understand accounting information it is necessary to understand the factors that influence how accounting is done in any given situation—factors such as who will be using the information, who is preparing it and why, and the overall environment that entities operate in. Chapter 1 also explains the nature of accounting and accounting information.
