Introducing Accounting in Business

Introducing Accounting in Business

C1

Importance of Accounting

is a Accounting system that Identifies

Records

information Relevant Reliable Comparable to help users make better decisions.

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that is

Communicates

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Accounting Activities

 Recording Business Activities

 Identifying Business Activities

 Communicating Business Activities

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C2

Users of Accounting Information

Internal Users External Users

•Lenders

•Consumer Groups

•Managers •Officers

•Sales Staff •Budget Officers

•Shareholders •External Auditors •Governments •Customers

•Internal Auditors •Controllers

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C2

Users of Accounting Information

External Users Internal Users

Financial accounting provides external users with financial statements.

Managerial accounting provides information needs for internal decision makers.

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Management Accounting

1. 2. 3. Internally focused No mandatory rules Financial and nonfinancial information; subjective information possible Emphasis on the future Internal evaluation and decisions based on very detail information Broad, multidisciplinary

Financial Accounting

1. 2. 3. 4. 5. Externally focused Must follow externally imposed rules Objective financial information Historical orientation Information about the firm as a whole More self-contained

4. 5.

6.

6.

C3

Opportunities in Accounting

Financial Managerial

•General accounting •Cost accounting •Budgeting •Internal auditing •Consulting •Controller •Treasurer •Strategy •Lenders •Consultants •Analysts •Traders •Directors •Underwriters •Planners •Appraisers

Taxation

•Preparation •Planning •Regulatory •Investigations •Consulting •Enforcement •Legal services •Estate plans •FBI investigators •Market researchers •Systems designers •Merger services •Business valuation •Forensic accountant •Litigation support •Entrepreneurs

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•Preparation •Analysis •Auditing •Regulatory •Consulting •Planning •Criminal investigation...