BUS-111 Lecture Notes - Lecture 1: Management Accounting, Financial Accounting
Document Summary
Every job requires technical expertise/understanding of key aspects to be successful. Professional certifications & continuing education necessary to develop skill set. Managerial accounting - internal info: generated to help managers better and more informed decision. Stakeholders - people w/ vested interest in company (owners, stockholders, govt entities [scc, irs] Fasb - set rules on how you treat certain business transactions. But not all stockholders are stakeholders" (ex) if you go to a diner every day = stakeholder (interest in their viability) Transaction - any activity involving equity (economic value) Financial accounting mostly historical: record keeping -> what happened, we paid this, we received this, we. Management accounting info uses financial & nonfinancial info. Manufacturing businesses: designed to make specific product, take raw materials and transform them into finished product. Service businesses: tax prep, dentist, doctor, printing company etc, no tangible product. Not for profit entity: cannot ignore need to meet budget, enough donations to serve the services it wants.
