UGBA 10 Lecture Notes - Lecture 3: Management Accounting, Financial Statement, Financial Accounting

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 10
• Professor: John Briginshaw

Document Summary

An information system of collecting financial data and making it more useful and getting it into focused info that decision makers can use (decision relevant) Uses the outputs from bookkeeping (recording or accounting transactions; bureaucratic process of typing into computer of what"s happening everyday) to make information useful. Requires judgment and skills rather than keeping records. Decision makers within (internal) and outside (external) the firm. Financial accounting focuses on external decision makers. Workforce and unions: get a good rate. Managerial accounting: study of use of accounting info within company. Competition would look at information to take advantage. Financial accounting: study of use of accounting information by external players. To avoid data overload and to protect info that could be advantageous to competitors. Use statements to estimate returns of equity, growth prospects, and if a firm is a good credit risk. Government regulatory agencies use to decide what price increase or decrease to allow.