ENG ELC 220 Lecture Notes - Lecture 12: Corporate Social Responsibility, Debits And Credits, Management Accounting
18 Sep 2020
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The core of financial accounting resolves around the following financial statements: Financial statements: the business documents that companies use to report the results of their activities to various user groups, which can include managers, investors, creditors and regulatory agencies. These parties use the reported information to make a variety of decisions, such as whether to invest in or loan money to the company. Luca pacioli venice method 1494: it quickly spread to become what we now know as double-entry accounting, which forms the basis of financial reporting to shareholders. It records and measures business activities, processes data into information and communicates them to decision makers who make decisions that will impact on business activities. Financial accounting: provides information for decision makers outside the reporting entity, such as investors, creditors, government agencies and the public. Management accounting: provides information for a company"s managers. (budgets, forecasts, projections)
