MGM102H5 Chapter Notes - Chapter 7: Cash Flow Statement, Bookkeeping, Financial Statement
Document Summary
Financial information is the heartbeat of competitive businesses. To run a business you must be able to read, understand, and analyze accounting reports and financial statements. Because those things tell us the financial health of the company. Accounting is recording, classifying, summarizing and interpreting of financial events to provides management and other interested parties with the information they need to make good decisions. Financial transactions can include such specifics as buying and selling goods and services, acquiring insurance, paying employees, and using supplies. A major purpose of accounting is to help managers evaluate the financial condition and the operating performance of the firm so that they can make well-informed decisions. Accounting work is divided into several major areas. Managerial accounting: used to provide info and analyses to managers within the organization to assist them in decision making. The data they work with reflect segments that the managers are responsible for.