Accounting For Managers
Accounting For Managers
Importance of Accounting
Accounting is the scoreboard of business Like a ball player who cannot keep score, an operating manager who does not fully understand and appreciate Financial Statements, works under an unnecessary handicap. You cannot manage what you cannot measure.
ACCOUNTING
Accounting is the language of business Accounting is the information system that
Measures business activities Processes that information into reports Communicates the results to decision makers The basis of Decision Making
Event
Financial Statements
Users
Users
Investors, lenders, managers
Accounting - a process of identifying, recording, summarizing, and reporting economic information to decision makers in the form of financial statements
Financial accounting - focuses on the specific needs of decision makers external to the organization, such as stockholders, suppliers, banks, and government agencies
Management Decisions
Chapter 1
DOUBLE-ENTRY ACCOUNTING
The Double-Entry System Every Transaction has two sides to it The Debit and Credit Each transaction affects at least two accounts