BUSI 2201 Lecture Notes - Lecture 1: Financial Statement, Net Income, Institute For Operations Research And The Management Sciences
19 Jan 2017
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Document Summary
Financial accounting: the process of measuring, recording, and communicating information about business activities to external users. Records transactions and prepares statements for potential (external) users. Managerial accounting: the process of supplying information to internal users for decision making. (supplies information to make decisions (detailed information about operations)). Expenses (cost and other expenses)-> cost can be controlled. There are rules that specify the content of the financial statements and how it will be presented. (ifrs/gaap/aspe) reports (e. g. cost reports) Help plan, direct, and control operations and make decisions. Each province has its own required by an outside group? securities commission that requires financial statements. Primarily prospective; information (historical vs. past performance forward looking future) Disaggregate; about what business unit is the report about? on an external organization segments of the business such as products and customers; informs local decisions. Work in cross-functional teams managers with managements.
