Textbook Notes (381,055)
CA (168,340)
UTSC (19,304)
MGT (1,095)
MGTA02H3 (363)
Chapter 4

Chapter 4 summary notes

4 Pages
118 Views

Department
Management (MGT)
Course Code
MGTA02H3
Professor
Chris Bovaird

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WHAT IS ACCOUNTING AND WHO USES IT?
-accounting: a comprehensive system for collecting, analyzing, and communicating financial
information
-bookkeeping: recording accounting transactions
-accounting information system (AIS): an organized procedure for identifying, measuring,
recording, and retaining financial information so that it can be used in accounting statements
and management reports
-many users for accounting information: business managers, employees and unions, investors...
WHO ARE ACCOUNTANTS AND WHAT DO THEY DO
-Controller: The individual who manages all the firm’s accounting activities
Financial and Managerial Accounting
-financial accounting system: the process whereby interested groups are kept informed about
the financial condition of a firm (concerned with external users like consumers, union...)
-helps ensure users can compare information from different or same company
-information in such reports is mostly historical (occurred in past accounting periods)
-managerial (management) accounting: internal procedures that alert managers to problems
and aid them in planning and decision making
-designed to aid in planning, they are forward looking rather than historical
Professional Accountants
-Chartered accountants (CA): an individual who has met certain experience and education
requirements and has passed a licensing examination; acts as an outside accountant for other
firms
-Certified general accountant (CGA): an individual who has completed an education program
and passed a national exam; works in private industry or a CGA firm
-certified management accountant (CMA): an individual who has completed a university
degree, passed a national examination, and completed a strategic leadership program; works in
industry and focusses on internal management accounting
Accounting Services
-audit: an accountant’s examination of a company’s financial records to determine if it used
proper procedures to prepare its financial reports
-forensic accountant: an accountant who tracks down hidden funds in business firms,
usually as part of a criminal investigation
-generally accepted accounting principles (GAAP): standard rules and methods used by
accountants in preparing financial reports
-tax services are also performed to help clients with tax returns
-management consulting services: specialized accounting services to help managers resolve a
variety of problems in finance, production scheduling, and other areas
Private Accountants
-private accountant: an accountant hired as a salaried employee to deal with a company’s day-
to-day accounting needs
MGTA04 Chapter 4
1
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Description
MGTA04 Chapter 4 WHAT ISACCOUNTINGAND WHO USES IT? - accounting: a comprehensive system for collecting, analyzing, and communicating nancial information - bookkeeping: recording accounting transactions - accounting information system (AIS): an organized procedure for identifying, measuring, recording, and retaining nancial information so that it can be used in accounting statements and management reports - many users for accounting information: business managers, employees and unions, investors... WHOAREACCOUNTANTSAND WHAT DO THEY DO - Controller: The individual who manages all the rms accounting activities Financial and ManagerialAccounting - nancial accounting system: the process whereby interested groups are kept informed about the nancial condition of a rm (concerned with external users like consumers, union...) - helps ensure users can compare information from different or same company - information in such reports is mostly historical (occurred in past accounting periods) - managerial (management) accounting: internal procedures that alert managers to problems and aid them in planning and decision making - designed to aid in planning, they are forward looking rather than historical ProfessionalAccountants - Chartered accountants (CA): an individual who has met certain experience and education requirements and has passed a licensing examination; acts as an outside accountant for other rms - Certied general accountant (CGA): an individual who has completed an education program and passed a national exam; works in private industry or a CGArm - certied management accountant (CMA): an individual who has completed a university degree, passed a national examination, and completed a strategic leadership program; works in industry and focusses on internal management accounting Accounting Services - audit: an accountants examination of a companys nancial records to determine if it used proper procedures to prepare its nancial reports - forensic accountant: an accountant who tracks down hidden funds in business rms, usually as part of a criminal investigation - generally accepted accounting principles (GAAP): standard rules and methods used by accountants in preparing nancial reports - tax services are also performed to help clients with tax returns - management consulting services: specialized accounting services to help managers resolve a variety of problems in nance, production scheduling, and other areas PrivateAccountants - private accountant: an accountant hired as a salaried employee to deal with a companys day- to-day accounting needs 1 www.notesolution.com
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