STEN 1000 Chapter Notes - Chapter 16: Management Accounting, Cash Flow Statement, Accounting Equation

• School: University of Windsor
• Department: Business
• Course: STEN 1000
• Professor: Fredette

Document Summary

Learning objective #1: describe the importance of accounting and financial information. Financial information is critical to the growth and development of an organization. Accounting provides the information necessary to measure a firm"s financial condition: what is accounting, accounting is the recording, classifying, summarizing, and interpreting of financial events and transactions that affect an organization. The methods used to record and summarize accounting data into reports are called an accounting system. Learning objective #2: define and explain the different areas of the accounting profession. Private and public accountants do essentially the same things, with the exception of independent audits. Private accountants do perform internal audits, but only public accountants supply independent audits. This means that they are the first place that transactions are recorded. Summaries of journal entries are recorded (posted) into ledgers. Software is available that can continuously analyze and test accounting systems to be sure that they are functioning correctly.