BUSN 1101 Lecture Notes - Lecture 8: Accounts Payable, Certified Public Accountant, Capital Structure

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: Vincent Muscolino

Document Summary

Accounting is often called the language of business. because it communicates so much of the information that owners, managers, and investors need to evaluate a company"s financial performance. These people are all stakeholders in the business they"re interested in its activities because they"re affected by them. In fact, the purpose of accounting is to help stakeholders make better business decisions by providing them with financial information. More importantly, accountants make sure that stakeholders understand the meaning of financial information, and they work with both individuals and organizations to help them use financial information to deal with business problems. Accounting is a system for measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other stakeholders to help them make better business decisions. Accounting can be divided into two major fields: Management accounting provides information and analysis to decision makers inside the organization (such as owners and managers) to help them operate the business.