ITM 330 Chapter 5: ITM330 Chapter 5 Notes.docx

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 330
• Professor: Peter Pille

Document Summary

Financial accounting consists of documenting all transactions of a company that have an impact on the financial state of the firm, and then using these documented transactions to create reports for external parties and agencies. Income statement (profit and loss statement) shows the company s sales, cost of sales, and the profit or loss for a period of time (typically a quarter or year) Managerial accounting deals with determining the costs and profitability of the company s activities. Provides information that managers use to control a company s day-to-day activities and to develop long-term plans for operations, marketing, personnel needs repayment of debt, and other management issues. The general ledger is a record where all company s account are kept. Many sap erp modules cause transaction data to be entered into the general ledger, including: Sales and distribution (sd) which lets the users record sales and creates an accounts receivable entry.