BUS 1201 Lecture Notes - Lecture 15: Accounts Receivable, Current Liability, Promissory Note
Document Summary
Users of accounting information: accounting is the measuring, classifying, and communicating of financial information to help people inside and outside a company make good financial decisions. Inside users of accounting information: a fi(cid:396)(cid:373)"s (cid:373)a(cid:374)age(cid:396)s use it to (cid:373)ake pla(cid:374)s a(cid:374)d guide the fi(cid:396)(cid:373) Employees-measure profits, job security & if retirement healthy: outside users of accounting information. Lenders-evaluate financial health and credit worthiness: government agencies-irs to ensure taxes are being paid and sec to confirm legal compliance. Managerial & financial accounting: managerial accounting is concerned with preparing accounting information and analyses for managers and other decision makers inside an organization, prepare budgets, analyze costs of production, and sales forecasts. Financial accounting is concerned with preparing accounting information and analyses primarily for people outside the organization: balance sheet. Other kinds of accountants: not-for-profit accountants perform the same services as for-profit accountants but are concerned with efficiency, not profits, government accountants-perform government accounting functions.
