BSB110 Lecture Notes - Lecture 1: Management Accounting, Financial Accounting, Stakeholder Management
Week 1 Accounting Lecture Notes
Topic 1: Introduction
What is Accounting?
• Accounting involves the information system that
o Measures business activity
o Processes the data into reports
o Communicates the results to decision makers
• It is divided into two main types:
o Financial accounting
o Managerial accounting
What is financial accounting?
• Financial accounting provides information for external decision makers such as
investors and lenders
• What decisions could be needed?
o Which business should we invest in?
o Should we loan this business money?
What is managerial accounting?
• Managerial accounting provides information for internal decision makers such as
managers to operate the business
How is accounting relevant in business?
• All these decisions involve economic information and accounting can help with these
decisions
Accounting in context- Corporate Social Responsibility
• Accounting is one part of the overall management of a business
o The way a business operates can impact on
▪ Environment
▪ Society
o Corporate Social Responsibility
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