名校MBA学习-财务会计课件Chapter_1.pptVIP

The Nature and Purpose of Accounting What Accounting Does Accounting is a system that provides information on: Amounts of resources. How resources were financed. Results achieved by using resources. For either: Parties inside or outside of organization. Profit and nonprofit organizations. Categories of Accounting Information Operating Financial accounting. Management accounting. Tax accounting. Operating Information Needed to conduct day-to-day activities. Largest quantity of accounting data. Examples: Hours worked by employees for payroll purposes. Automobiles available for sale to customers. Amounts owed by customers. Parts and accessories on hand. Financial Accounting Information For external users (investors) and managers. Used by investors to make decisions to buy, sell or hold shares of company. Primary financial statements: Balance sheet. Income statement. Statement of cash flows. Common rules used so investors can compare with other companies’ financial statements. Management Accounting Information For internal users such as president, marketing manager and production manager. Used for three functions of managers: Planning. Implementation. Control. Planning Deciding what actions should be taken. Decision making involves: Identify problem or opportunity. Specify and rank criteria. Identify alternatives. Use accounting and other information to analyze. Compare alternatives and select best. Budgeting = process of planning for a specified time, often for one year. Implementation Actions to provide human and other resources to achieve planned results. Requires supervision of managers. Managers must change plans as conditions require. Control Process to ensure employees perform properly. Accounting information is used to: Communicate. Inform employees of plans. Motivate. Encourage employees to act consistently with organization’s goals. Direct attention. Provide feedback, that is, signal when a problem may exist. Appraise. Provide information to appraise perfor