MGTA02H3 Chapter Notes - Chapter 4: Management Accounting, Financial Statement, Bookkeeping
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MGTA02H3 Full Course Notes
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Accounting: comprehensive system for collecting, analyzing, and communicating financial information. Measure business performance, sales, expenses, profits, or loses translate this info so managers (and others) can make decisions. 2 types of accounting financial accounting: tells external users about financial condition of firm (looks at business as a whole), collected on an annual basis. Managerial accounting: tells internal users about performance and problems. For planning, decision making and control purposes (looks at individual products, plants, or divisions) Accounting information system: organized procedure for identifying, measuring, recording, and retaining financial information so that it can be used in accounting statements and management reports. Controller: individual who manages all the firm"s accounting activities. Financial accounting system: process whereby interested groups are kept informed about the financial condition of a firm. Managerial (management) accounting: internal procedures that alert managers to problems and aid them in planning and decision-making.