or estimation; and provide information on activities affecting the society. Test Your Understanding - I Complete the following sentences with appropriate words: (a) Information in financial reports is based on ..................... transactions. (b) Internal users are the .....................
of the business entity. (c) A ..................... would most likely use an entities financial report to determine whether or not the business entity is eligible for a loan. (d) The Internet has assisted in decreasing the .....................
in issuing financial reports to users. (e) ..................... users are groups outside the business entity, who uses the information to make decisions about the business entity. (f) Information is said to be relevent if it is ......................
(g) The process of accounting starts with ............ and ends with ............ (h) Accounting measures the business transactions in terms of ............ units.
(i) Identified and measured economic events should be recording in ............ order. The role of an accountant in generating accounting information is to observe, screen and recognise events and transactions to measure and process them,