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Includes concepts on financial statements and professional roles, ethics, and sustainability.",{"@graph":14,"@context":71},[15,34,54],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/the-role-of-accounting-in-decision-making-learning-objectives/648302/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":48,"encodingFormat":47,"isAccessibleForFree":49,"interactionStatistic":50},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/the-role-of-accounting-in-decision-making-learning-objectives/648302.png","ImageObject",300,407,{"name":42,"@type":43},"Mabel","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-23",true,{"@type":51,"interactionType":52,"userInteractionCount":4},"InteractionCounter",{"@type":53},"ViewAction",{"@type":55,"mainEntity":56},"FAQPage",[57,63,67],{"name":58,"@type":59,"acceptedAnswer":60},"Why is accounting important for decision making?","Question",{"text":61,"@type":62},"Accounting measures business activities, turns data into reports, and communicates results to decision makers. 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While many decisions in our everyday life are routine and can be made without reference to detailed information, such as which clothes to wear in the morning, other decisions are more infrequent and have longer-lasting effects, such as choosing a mobile phone network and contract type. The bigger the decision, the more information you will want before making it. In the choice of which type of mobile phone to buy, in order to make the best decision you would need to know what each option provides (for example, the number of minutes included, and the amount of data allowed), as well as the cost of each plan. What you are doing is weighing up the costs and benefits of each option.  \nIn a formal setting, organisations use accounting information to inform them prior to making important decisions. For example, if the retail giant Myer considered a bid to purchase rival David Jones, how much should it pay? The answer depends partly on what the accounting information says David Jones is worth.  \nThe ‘balance sheet’ shown above is one of the most important and central financial statements prepared by accountants. Accounting information enables organisations to make better decisions.  \nLO  \nLO  \nLO  \nLO  \nL  \nLO  \nLO  \nLO  \nLEARNING OBJECTIVES  \n1 Explain the role of accounting and its  \nimportance to multiple stakeholders  \n2 Describe the accounting equation, and  \ndefine assets, liabilities and equity  \n3 Use the accounting equation to analyse transactions  \n4 Prepare financial statements  \nO 5 Use financial statements and return on assets (ROA) to evaluate business performance  \n6 Describe the organisations and principles that govern accounting  \n7 Identify the three main types of business organisation  \n8 Explain the role of ethics and sustainability in accounting  \n 2  ACCOUNTING  \nLO 1  \nExplain the role of accounting and its importance to multiple stakeholders  \nAccelerators Learning, whose balance sheet is illustrated, is a small business, but its balance sheet contains the same type of information as that shown in the balance sheet of very large organisations such as JB Hi-Fi. The same is true for the other financial statements that all well-run businesses prepare and use, and which you will learn about as you work your way through this text.  \nIn this introductory chapter we introduce accounting in a small business context through Cai Wang’s Accelerators Learning; and later, starting in Chapter 5 (‘Retailing operations’), through Luca Millen’s Millennial Platforms. You will see how Cai and Luca run successful businesses by treating people fairly, planning for activities that are sustainable, and capitalising on their general business and accounting acumen. You will also see how understanding financial statements like the balance sheet is one of the first steps towards business success. We will be following the fortunes of Accelerators Learning and Millennial Platforms throughout the text to see how different accounting concepts relate to their businesses. In addition, we will use examples from large firms to illustrate the fact that the same accounting principles apply to firms of any size. By the time you get to the chapter on the framework of accounting (Chapter 17), you will have a broad appreciation of how accountants prepare financial statements for all types of organisation.  \n1.1 WHY IS ACCOUNTING IMPORTANT?  \nYou may have heard the term accounting before, and we have just said that it provides valuable information for decision making, but what exactly is it? Accounting measures business activities, processes the data into reports and communicates the results to decision makers. Examples of this information are the amount of profit a business has made and how much the items that the business owns are worth. Accounting is the language of business. The better you understand this language, the better you can manage your business ","cbCainu0t6SyExuS","https://ap.wps.com/l/cbCainu0t6SyExuS","pdf",3994441,16,"English","# Learning Objectives\n## Why is accounting important?\n## The language of accounting","[{\"question\":\"Why is accounting important for decision making?\",\"answer\":\"Accounting measures business activities, turns data into reports, and communicates results to decision makers. Better understanding of this information improves management, investment decisions, and stakeholder outcomes.\"},{\"question\":\"What role does the balance sheet play in organizational decisions?\",\"answer\":\"The balance sheet is a central financial statement prepared by accountants. It helps organisations judge value and supports better decisions, including major choices such as acquisition bids.\"},{\"question\":\"What do accountants do beyond recording transactions?\",\"answer\":\"Contemporary accounting involves substantial time spent on decision making, using both financial and non-financial information. Accountants also interpret information and explain it to stakeholders in clear terms.\"}]","THE ROLE OF ACCOUNTING IN DECISION MAKING - Learning Objectives | PDF"]