ARBUS101 Chapter Notes - Chapter 16: Financial Accounting, Tax Accounting In The United States, Management Accounting
29 Nov 2016
School
Department
Course
Professor
Document Summary
Accounting: the recording, classifying, summarizing, and interpreting of financial events to provide management and other interested parties the financial information they need to make good decisions. The method used to record and summarize accounting data into reports is called an accounting system. The accounting profession is divided into five key working areas: managerial accounting, financial accounting, compliance (auditing, tax accounting, government and not-for-profit accounting. Managerial accounting: accounting used to provide information and analyses to managers inside the organization to assist them in decision making. Concerned with measuring and reporting cost of production, marketing, and other functions; ex. Preparing budgets, checking whether or not units are staying within their budgets. Financial accounting: accounting information and analyses prepared for people outside the organization. Differs from managerial accounting in that the information and analyses it generates are for people primarily outside the organization.
