MGMT 1B Lecture Notes - Lecture 1: Debits And Credits, Intangible Asset, Current Asset
Document Summary
Managerial accounting is equal to cost accounting. Financial accounting is used for external users such as banks, creditors, and investors. Managerial accounting is for internal users such as companies who have to manage their cost. Rent is a fixed cost while coffee beans are a variable cost. The number 1 reason companies fail is because of their cash flow. Cash equivalents are investments that have a 90 day or shorter lifespan. Assets: cash, accounts receivable, marketable securities, property/ plant/ and equipment. Current asset: asset you expect to use within a year. Noncurrent assets: asset that can be used longer than a year; an example is property, plant and equipment. Revenue and common stock/ contributed capital cause equity to go up. Contributed capital is used in terms of private companies while common stock is for publicly traded companies. Dividends is used in terms of private companies while drawings are used for publicly traded companies.
