Introduction to Accounting

Class Exercise Week 1

The Need for Accounting
Class Exercise 1
1. Accounting is undertaken by organisations for many reasons. What do you think they are?
Write down at least three reasons.

2. What sort of transactions does an accountant record? Write down at least four.

3. List three things about an organisation that accountants might not record, but which you
would regard as useful things to be told about.

4. In conventional accounting, which of the events listed in the table below would usually be
recorded and which would be ignored?

Recorded
1. Selling one of the organisations cars
2. Paying the wages
3. Making the tea
4. Moving staff between jobs in the office
5. Incurring a fine for polluting a local river
6. Paying a fine

5. What is the difference between financial and management accounting?

Ignored

Introduction to Accounting
Class Exercise Week 1
The Need for Accounting
Class Exercise 2
1.

What is the purpose of producing accounting information?

2.

Explain why you believe all organizations need an accounting system.

3.

Discuss what you consider might be appropriate measures of success for a

i) Hospital

ii) Bank

4.

Explain what you consider to be the role and responsibilities of an accountant.