AFM131 Lecture Notes - Lecture 16: Chartered Accountant, Asset, Accounts Payable

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

Chapter 16 understanding accounting and financial information. Recording, classifying, summarizing and interpreting of financial events and transactions to provide interested parties and management the financial information they need to make good decisions about the operation. Report financial information to provide for interested stakeholders, owners, creditors, supplies, employees etc. Accounting is divided into 5 areas: managerial accounting. Accounting used to provide information and analyses for managers inside the organization to assist them in decision making. Concerned with measuring and reporting, cost of production, marketing, preparing budgets (planning), checking is business is within budget (controlling) and finding strategies to minimize taxes. Managerial accounting is also concerned about sustainability practices employed by business organizations: financial accounting. Differs from managerial accounting as the information and analyses it generates is for people outside the organization. The information not only goes to managers, owners but also creditors, lenders, customers, suppliers etc. Annual report yearly statement of financial condition, progress and expectations of an organization.