BUSN 1101 Study Guide - Accounts Payable, Management Accounting, Variable Cost

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: William Shimer

Document Summary

Chapter 12: the role of accounting in business. The process of measuring and summarizing business activities, interpreting financial information, and communicating the result to management and other decision makers. Management accounting provides information and analysis to decision makers inside the organization (such as owners and managers) to help them operate the business. Financial accounting provides information not only to internal managers, but also to people outside the organization (such as investors, creditors, government agencies, suppliers, employees, and labor unions) to assist them in assessing a firm"s financial performance. Owners and managers: they look at financial statements as a report card to see if the company did or did not make profit this helps them take corrective decisions. Investors and creditors: since they put on the money they want to look at statements to see the financial health and performance of the company to decide about continued investments.