This reading will introduce you to the broader context of accounting and its role. As you can see, there are several learning outcomes associated with this reading. Please don’t be daunted by this, primarily what you need to focus on is the nature of accounting and its main functions, the potential users of accounting information and the decision making process.

Task

Read Chapter 1 - Decision making and the role of accounting in your textbook.

Learning Outcome

After reading this chapter, you should be able to:

• outline the dynamic environment in which accountants work
• discuss the nature of decisions and the decision-making process
• outline the range of economic decisions made in the marketplace
• explain the nature of accounting and its main functions
• identify the potential users of accounting information
• apply information to make basic economic decisions
• describe the role of accounting information in the decision-making process
• compare accounting information for management and external users
• summarise how the accounting profession is organised in Australia
• identify the different areas of the economy in which accountants work
• identify the importance of ethics in business and accounting and how to recognise and handle ethical dilemmas as part of the decision-making process

Due

Early in Week 1 prior to learning tasks 1.5 and 1.6.

Suggested Procedure

1. Read the chapter.
2. After reading, check your understanding by seeing if you can answer the following:
   • What are the four main steps of the decision making process?
   • What is the nature of accounting and how is accounting defined?
   • Who are the users of accounting information?
   • Does accounting information provide all information needed for making an economic decision?
   • What are the three main areas of business in which accountants generally practice?
3. If you can’t, skim the relevant sections of the chapter to obtain the answers.