ACC 201 Lecture Notes - Lecture 1: Cash Flow Statement, Financial Statement, Financial Accounting
10 Oct 2018
School
Department
Course
Professor
Document Summary
Accounting is a set of activities that translates day to day business transactions into quantifiable information useful for decision making. Accounting tended to be bookkeeping, now it is software. Focus more on using info to make decision. Set of activities = deposited, collected money from customers, journal entry, collect balances, etc. Financial accounting focuses on outside decision-makers such as investors, lenders, customers, suppliers and the government. Provides them with the financial statements in the form of balance sheet, income statement and cash flow statement. Managerial accounting- focuses on inside decision makers, namely the managers within an organization. Augments information in financial statements with accounting concepts that can enhance managerial decisions. Believability and comparability of financial accounting information are two main concerns of outside decision makers. F/a statements must be prepared in accordance with gaap. Believability and comparability of m/a information are less of a concern for managers. M/a does not need to follow strict rules or the gaap.
