MGMT 1A Chapter Notes - Chapter 1.1: Management Accounting, Financial Statement
Document Summary
Accounting : consists of 3 basic activities . (ex. sale of snack chips by pepsico, provision of telephone services by at&t, and. Consists of keeping a systematic, chronological diary of events (measured in usd) The collected information to interested users, through accounting reports. Recorded data is reported in a standardized way accumulates information. In doing this, accounting process simplifies a multitude of transactions (makes. Prepare accounting reports and analyze / interpret for users. Vital element in communicating economic events = accountant"s ability to . Aggregate ) resulting from similar transactions (in the series of activities understandable and meaningful) Those economic events, in order to provide a history of its financial activities (i. e. financial statements) The reported information significant financial trends & relationships. Interpretation - explaining the uses, meaning, and limitations of reported data. Bookkeeping - usually involves only the recording of economic events (only one part of the accounting process)
