1 / 20

Financial & Managerial Accounting

The Basis for Business Decisions. Financial & Managerial Accounting. THIRTEENTH EDITION . Williams Haka Bettner. Chapter 1. ACCOUNTING: INFORMATION FOR DECISION MAKING. The accounting process.

montana
Télécharger la présentation

Financial & Managerial Accounting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Basis for Business Decisions Financial & Managerial Accounting THIRTEENTH EDITION Williams Haka Bettner

  2. Chapter1 ACCOUNTING:INFORMATION FOR DECISION MAKING

  3. The accounting process Accounting “links” decision makers with economic activities ¾ and with the results of their decisions. Accounting information Economic activities Actions (decisions) Decision makers

  4. Types of Accounting Information Financial Tax Managerial

  5. Information System • Information Users • Investors • Creditors • Managers • Owners • Customers • Employees • Regulators -SEC • -IRS • -EPA • Financial Information Provided • Profitability • Financial position • Cash flows • Decisions Supported • Performance evaluations • Stock investments • Tax strategies • Labor relations • Resource allocations • Lending decisions • Borrowing

  6. Payment Car Basic Functions of an Accounting System • Interpret and record business transactions.

  7. Classify similar transactions into useful reports. • Summarize and communicate information to decision makers. Basic Functions of an Accounting System • Interpret and record business transactions.

  8. External Users of Accounting Information • Owners • Creditors • Labor unions • Governmental agencies • Suppliers • Customers • Trade associations • General public

  9. (Specific) Provide information about economic resources, claims to resources, and changes in resources and claims. Provide information useful in assessing amount, timing and uncertainty of future cash flows. Provide information useful in making investment and credit decisions. (General) Objectives of Financial Reporting

  10. The primary financial statements. Balance Sheet Income Statement Statement of Cash Flows Objectives of External Financial Reporting

  11. Characteristics of Externally Reported Information A Means to an End Usefulness Enhanced via Explanation Broader than Financial Statements Based on General-Purpose Assumption Historical in Nature Results from Inexact and Approximate Measures

  12. Users of Internal Accounting Information • Board of directors • Chief executive officer (CEO) • Chief financial officer (CFO) • Vice presidents • Business unit managers • Plant managers • Store managers • Line supervisors

  13. Objectives of Management Accounting Information To help achieve goals and missions To help evaluate and reward decision makers

  14. Characteristics of Management Accounting Information Timeliness Identify Decision Maker A Means to an End Measures of Efficiency and Effectiveness Oriented Toward Future

  15. Integrity of Accounting Information • Institutional Features • Generally Accepted Accounting Principles (GAAP) • Financial Accounting Standards Board • Securities and Exchange Commission • Internal Control Structure • Audits • Legislation

  16. Integrity of Accounting Information • Professional Organizations • American Institute of Certified Public Accountants • Institute of Management Accountants • Institute of Internal Auditors • American Accounting Association

  17. CPA Integrity of Accounting Information • Competence, Judgment and Ethical Behavior • Certified Public Accountants (CPAs) • Certificate in Management Accounting (CMA) • Certificate in Internal Auditing (CIA) • Code of Professional Conduct

  18. Integrity of Accounting Information • Careers in Accounting • Public Accounting • Management Accounting • Governmental Accounting • Accounting Education

  19. End of Chapter 1

More Related