MGMT 100 Study Guide - Final Guide: Accounts Receivable, Preferred Stock, Accounts Payable
Document Summary
Lo1 describe the role that accounting and financial information play for a business and for its stakeholders. Businesses fail according to their financial procedures. Accounting reports reveal the growth or decline the business has. Accounting is the recording, classifying, summarizing, and interpreting of financial events and transactions in an organization to provide management and other interested parties the financial information they need to make good decisions. The buying and selling of services/products, insurance, wages, supplies. A major purpose of accounting is to help managers make well-informed decisions. Lo2 identify the different disciplines within the accounting profession. The accounting profession is divided into five key working areas: managerial accounting, financial accounting, auditing, tax accounting, government and not-for-profit accounting. Managerial accounting provides information and analyses to managers inside the organization to assist them in decision making. Concerned with measuring and reporting costs of production, marketing, and other functions: setting budgets (planning), ensuring within budget (controlling), and designing strategies to minimize taxes.
