MGTA02H3 Chapter 4: Chapter 4 - Study Guide

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MGTA02H3 Full Course Notes
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Accounting : a comprehensive system of collecting, analyzing, and communicating financial information. Purpose: measure business performance (e. g. $ sales, expenses, profits or losses, taxes, translate this info so managers (and others) can make decisions. 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 managerial reports. Controller: the individual who manages all the firm"s accounting activities. Financial accounting system: the process whereby interested groups are kept informed about the financial condition of a firm. Tells external users about financial condition of firm. Tends to look at business as a whole. Managerial (management) accounting: internal procedures that alert managers to problems and aid them in planning and decision making. Tells internal users about performance and problems, for planning, decision making and control purposes. Tends to look at individual products, plants or divisions.