Exercise 1:

Identify if the following transactions should be recorded by accountants:

a. Accountants receive an invoice from suppliers that request to pay $2000 for
the laptop purchased for the son of the CEO
b. Accountants receive an invoice from suppliers that request to pay $2000 for
the laptop purchased for the usage of selling department
c. Accountants receive an invoice from suppliers that request to pay $2000 for
the laptop purchased for the usage of the subsidiaries/mother company.

Exercise 2:
An Binh, a sole trader, owns An Binh Car Repairs – a small garage in Hanoi. The
business was established last year to offer vehicle repairs and maintenance such as
brakes, and automotive air conditioner repairs. The garage also provides new custom
installation services, such as automotive glass, and stereo systems. An Binh knew
little about accounting, so he approached you to help him with advice on the garage’s
accounting system.

Required: Examine the purpose of the accounting function of An Binh Car

Repairs

Exercise 3:
What are the differences in demand for accounting information of external users
and internal users (ie. managers)?

Exercise 4:
Identify the purposes of each user of accounting information?

Exercise 5:
Give examples of cases that accountants violate the ethical principles?