bookkeeping - ✆day to day keeping of transcations
steps of decision making - ✆identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - ✆analysis of events
record and report financial effects of business activities
where does capital come from (3) - ✆investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - ✆financial and managerial
managerial accounting - ✆gather and analysis of information for internal use and
decision making.
financial accounting - ✆gather, report, analysis of information for external usersinvestors and creditors. summary of a business
what does managerial accounting review - ✆product cost, breakeven analysis,
budgeting, performance analysis, outsource production
what does financial accounting review - ✆credit analysis, financial health, estimate
value of the company
examples of external financial reports for financial accounting - ✆annual report,
financial statement, balance sheet, income statement, statement of cash flow
balance sheet - ✆reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - ✆how much did you ,ake
period of time - from nov to jan
statement of cash flow - ✆where did the cash come from and where did the cash go
period of time - from nov to jan