mkt100 Lecture Notes - Lecture 1: American Accounting Association, Fiduciary, Management Accounting
Document Summary
Explain the interrelated functions of management accounting. Explain the roles of financial and management accounting. Identify key trends in accounting that influence planning, decision making and control. What is accounting? (cid:862)a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g is the pro(cid:272)ess of ide(cid:374)tifyi(cid:374)g, (cid:373)easuri(cid:374)g a(cid:374)d (cid:272)o(cid:373)(cid:373)u(cid:374)i(cid:272)ati(cid:374)g e(cid:272)o(cid:374)o(cid:373)i(cid:272) i(cid:374)for(cid:373)atio(cid:374) to permit informed judgements and de(cid:272)isio(cid:374)s (cid:271)y users of the i(cid:374)for(cid:373)atio(cid:374). (cid:863) Accounting is a process: capturing business events, recording financial effects of business events. It is concerned with economic information: mainly financial, could be non-financial how many hours does it take to make this product. Supports informed judgements and decisions by users. Includes anyone with an interest in the survival, profitability and growth of a business, including creditors (banks), shareholders, employees, tax authorities, suppliers. (cid:862)a(cid:374) o(cid:271)ligatio(cid:374) or willi(cid:374)g(cid:374)ess to a(cid:272)(cid:272)ept respo(cid:374)si(cid:271)ility or to a(cid:272)(cid:272)ou(cid:374)t for o(cid:374)e"s a(cid:272)tio(cid:374)s(cid:863) Accounting provides a method to demonstrate accountability to stakeholders. Managing a business on behalf of owners that are not directly involved in the management of the company.
