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ACCT 2020 (1)
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Chapter 1

ACCT 2020 Chapter 1: ACCT2020Ch1

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University of North Texas
ACCT 2020

ACCT 2020 Chapter 1 Notes Managerial Accounting VS Financial Accounting For internal management For Stockholders and potential investors Forms of information depends on Forms of information: balance sheet, manager’s needs (for efficiency and statement of cash flows, income effectiveness) statements *gather*summarizes*reports* Complies to GAAP Based on past and future Based on Past Transactions Manager’s 3 Primary Responsibilities: 1. Planning 2. Directing 3. Controlling Planning: setting goals and objectives for the company and determining how to achieve them (think budgets) Directing: overseeing day to day operations. Including: ● Product Cost Reports ● Product Sales Information ● Managerial Accounting Reports Controlling: Evaluating the business's results against the plan and making adjustments to reach the goal (think feedback) Budget: the quantitative expression of a plan Basic Structure of Corporations Board of Directors: elected by stockholders to oversee a large company. The board members only meet periodically. CEO/ Chief Executive Officer: Manage the company on a daily basis COO/ Chief Operating Officer: Responsible for the company’s operations such as research, development, production, and distribution. CFO/ Chief Financial Officer: Responsible for all the company’s financial concerns. Treasurer: Reports directly to the CFO and primarily responsible for raising funds (stocks and bonds) and investing funds. Controller: Reports directly to CFO and responsible for general financial and managerial accounting and tax reporting. Internal Audit Function: Ensure the company’s internal controls and risk management policies are functioning properly. Reports directly to Audit committee. Audit Committee: Oversees internal audit function and annual audit (by independent CPAs.) Cross-Functional Teams: employees representing various functions for the company. Good for decisions because many view points are offered. Management accountants are usually leaders. The team usually reports to a vice president. Management Accountants: ● Internal consultants/business advisor ● Properly capture economic events by designing information systems ● Planning, Analyzing, and Interpreting data Skills Required of Management Accountant ● Solid knowledge of financial and managerial accounting ● Analytical skills ● Knowledge of how a business functions ● Ability to work on a team ● Oral and written communication skill ● Strong microsoft and excel skills IMA/ Institute of Management Accountants: ➔ The professional M.A. Association in the U. U. ➔ Their mission: ◆ Provide a forum for research ◆ Educate ◆ Knowledge sharing ◆ Advocate highest ethical choices ➔ Educate about the current role of managerial accountants in business ➔ Publishes monthly journal, Strategic Finance ➔ Issues the CMA Certification ◆ Certified Management Accountant-a rigorous test including continued studies AICPA: American Institute of Certified Public Accountants: largest accountants association- joined CIMA to create special certification “CGMA” CGMA/ Chartered Global Management Accountant: ● Available to qualifying AICPA &CIMA members ● Recognizes unique business and accounting skills possessed by CPAs ● Based on examination and professional experience The IMA’s Statement of Ethical Professional Practice requirements: ● Maintain Professional Competence ● Preserve Confidentiality of Information ● Uphold their Integrity ● Perform their duties with Credibility For Resolving Ethical Dilemmas (in order) 1. Discuss with immediate supervisor a. Or their supervisor b. Or audit committee/ board of directors 2. Discuss with
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