ABSTRACT
Accounting provides information on identifying economic facts to their users through the financial statements. Financial statements should be prepared considering the precautionary principle, and should give a true and fair view of the assets, liabilities of an entity, its financial position and results of operations. The primary purpose of financial statements is that the information in the financial statements is useful to users. For users to properly assess the information presented in the financial statements, they are based on quantitative information in the financial statements that are associated with other information presented in the notes to the financial statements (Pakšiová & Kubaščíková 2015). In this article we will focus on the definition of responsibilities among businesses accounting in double entry bookkeeping, further on the reporting structure in the accounts of business entities, misstatements in the financial statements and their impact on the decisions of users of financial statements.
