BU127 Lecture Notes - Lecture 2: Management Accounting, Financial Statement, Purchasing Manager
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BU127 Full Course Notes
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The players: investors, creditors, managers: investors: make money from dividends and capital appreciation o creditors: make money from interest payments. Business operations: purchase materials and labour, manufacture products, collect cash from customers and pay creditors o sell products to consumers. Accounting tries to provide information about the business operations to the players of the business. Manufacturers and suppliers create products and provide inputs the accounting system. Keep track of transactions and operations that the business does. Organize the information into different types of reports. Report on different financial statements (4 main types) Report the information to decision makers, therefore: the main purpose is to provide information to make decisions. Information is provided to managers, investors, and creditors. Two kinds of accounting: financial accounting: external information for creditors and investors periodic financial statements and disclosures, managerial accounting: internal information for management detailed plans and continuous performance reports external vs internal transactions:
