1. The Basics of Accounting
李春华

2. 1. Accounting is an Information System
Point 1 The Basis of Accounting
1. Accounting is an Information System
 Identification.
Recording.
 Communication.

3. Two broad groups:
internal users
external users.

4. Internal users
Internal users of accounting information plan, organize, and run a business.

5. Internal Users

6. External users.
External users work for other organizations but have reasons to be interested in the company's financial position and performance.

7. External Users

8. 2. Generally Accepted Accounting Principles
cost principle
Revenue recognition
Matching
Full disclosure

9. Assumptions Economic Entity Assumption. Going Concern Assumption.
Monetary Unit Assumption.
Accounting (time) period Assumption.