Accounting Information.

L.O
Explain the role of accounting in providing information
for monitoring progress and decision making
Activity

• Why do you think every business needs accounting?

(Think of the reason-Write it down to share with class)
 Book keeping
• It is difficult to keep all transactions of a business in memory.
• Therefore, a form of recording will have to be done.
• When recording is done in a specific way, it is called book keeping.
Think of this…..

• What will necessitate the closure of a super market?

Remember Nakumatt & Tuskeys …
What is the language for business?

• Accounting is often called “the language of business.”

• Why? Because it communicates so much of the information that owners, managers, and investors need to evaluate a
company’s financial performance.
• To run a business you need data, records, reports, analysis, accurate information about assets, debts, liabilities,
profits.
• Management cannot decide without reasonable information for backing it up.
• Accountancy can support the decision-making process and management activity.
• The objective of an accounting system is to provide financial information concerning the studied company. The
information concerns the financial situation and the performance of a company and there is intended to the users to
taking decisions.