BUSINESS MANAGEMENT Lecture Notes - Lecture 3: Bookkeeping, Cash Flow Statement, Management Accounting

• School: Cavite State University
• Department: Business
• Course: BUSINESS MANAGEMENT

Document Summary

Accounting is the process of recording a company"s financial transactions. Summarizing, analyzing, and reporting these transactions to supervisory authorities, regulators, and tax collectors are all part of the accounting process. A financial statement is a concise summary of a company"s financial transactions for an accounting period, summarizing its operations, financial condition, and cash flows. Accounting is a critical function for decision making, cost planning, and economic performance measurement in any business, regardless of size. An accountant can handle basic accounting needs, but for larger or more complex accounting tasks, a certified public accountant (cpa) should be used. Management accounting and cost accounting are two important types of business accounting. Management accounting assists the management team in making business decisions, whereas cost accounting assists business owners in determining product costs. When preparing financial statements, professional accountants adhere to a set of standards known as "generally accepted accounting principles" (gaap). Accounting is a critical function in almost every business.