Accounting-Managerial v.s. Financial

Managerial accounting is directed towards: providing information and analysis to managers inside an organization. Activities performed by managerial accountant include: 1. Determining the cost of providing a service or making a product 2. Assist management in profit planning and formalizing the plans into budgets 3. Determine the behavior of costs Read more…

Financial Accounting

accounting equation Assists = liabilities + stockholders equity -referred to as fundamental model of business valuation revenues sales of goods or services to customers net income revenue-expenses financial statements a companies primary way of communicating to external users income statement a company’s timely report of expenses and revenues the two Read more…

Managerial Accounting Chapter 1

Managers Responsibilities Planning, Directing, Controlling Planning sets goals and objectives ex. generate more sales>open a new store Directing overseeing day-to-day operations ex. use cost report to adjust material usage Controlling evaluate results and make adjustments Managerial accounting differs from financial accounting in that managerial accounting emphasizes data relevance over data Read more…

Financial Accounting Ch. 1-3

accounting information system that identifies, records, and communicates the economic events of an organization annual report report prepared by corporate management that presents financial information and an independent auditor’s report Assets Resources owned by a business Auditor’s report A report prepared by an independent outside auditor stating the auditor’s opinion Read more…

Principles of Financial Accounting Chapter 1

Accounting Information and measurement system that identifies, records, and communicates relevant information about a company’s business activities. Accounting Equation Equality involving a company’s assets, liabilities, and equity; Assets = Liabilities + Equity Assets Resources that a company owns or controls that are expected to provide current and future benefits to Read more…

Managerial and Financial Accounting Differences

Managerial Internal reporting and decision making Financial External reporting Financial Historical information Managerial Future Decision Making Managerial Emphasizes relevance Financial Emphasizes verifiability Financial Precision Managerial Timeliness Financial GAAP Managerial not required Financial Company wide reporting Managerial Segement reporting

Financial Accounting Chapter 1

Stockholders investors Creditor lenders (banks) – make money on loans by charging interest Dividends cash payments that stockholders hope to receive; a portion of what the company earned Internal Decision Makers managers – need info about the company’s business activities to manage the operating, investing, and financing activities of the Read more…

Financial accounting chapters 5-8

Perpetual inventory system keeps a running computerized record of merchandise inventory Purchase of merchandise inventory Merchandise inventory DB cash or accounts payable CD purchase return cash or accounts payable DB merchandise inventory CD payment of freight in merchandise inventory DB cash CD payment with in discount period accounts payable DB Read more…

ACCOUNTING 16

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: b. be prepared in accordance with generally accepted accounting principles What is the primary criterion for the preparation of managerial accounting reports? b. Meet the manager needs Which of the following is Read more…

Managerial Accounting Chapter 1

Managerial Accounting Focuses on providing internal mgmt. with information it needs to run the company efficiently and effectively (internal accounting) Controlling Comparing and evaluating actual results with planned results and taking corrective action Planning Setting goals & objectives and determining how to achieve them How do managerial accounting and financial Read more…

Financial Accounting Chapter 1-6

Accounting A system of analyzing, recording, and summarizing the results of a business’s operating, investing, and financing activities and then reporting them to decision makers. Accounts A standardized format that organizations use to accumulate the dollar effects of transactions on each financial statement item. Balance Sheet (Statement of Financial Position) Read more…

Financial Accounting (Ch 1-4)

Creditor lender, money supplier Debitor person or organization who is in debt or under financial obligation to another Accounting a system that collects and processes financial information about an organization and reports that information to decision makers financial activities borrowing/paying back money to lenders and receiving additional funds from stockholders Read more…