Accounting Budgeting 商务英语函电.pptVIP

Introduction to Buisiness Accounting Budgeting What is Accounting? A comprehensive system for collecting, analyzing and reporting financial information. Who Uses Accounting Information? Types of Accounting Financial Accounting What it is A major branch of accounting involving the collection, recording and extraction of financial information, and the summary of it in the form of a periodic profit and loss account, a balance sheet and a cash flow statement in accordance with legal, professional, and capital market requirements. Financial Accounting What it does? Describes the financial resources, obligations and activities of an organization. Fundamental purpose: to reduce principal-agent problem by measuring and monitoring agents performance. Who uses it? Used primarily by external parties such as investors and creditors, suppliers, banks and government agencies. Financial Accounting Report Types Standard Financial Statements Balance sheet Income statement Statement of Cash Flows Rules: GAAP (Generally Accepted Accounting Principles) Managerial Accounting What it is The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations in planning future operations, and in developing overall business strategies. Managerial Accounting Who uses it? Used primarily by internal parties such as company managers and other decision makers. Report Types Customized to the needs of the users Accounting Decision-Making Tax Accounting Who uses it? Government agencies Report Types Tax returns Rules Tax rules Accounting System The total mechanism of records and procedures of recording, retrieving, and reporting information on the financial position and operations of an organization. Consists of the personnel, procedures, technology and records by an organization. Basic Functions of an Accounting System CPA CMA CPA: Certified Public Accountant Offer