BUS-111 Chapter Notes - Chapter 1: Accounting, Financial Accounting Standards Board, Standard Accounting Practice
Document Summary
1. 1 importance of accounting & difference b/w financial & Based on factors that are financial and nonfinancial. "accounting is the language of business: deciding whether to lease or buy a vehicle, you consider not only monthly payments but also vehicle maintenance and reliability, considering 2 jobs, weigh factors such as hours, commuting, options for shopping/entertainment. All factors, financial and nonfinancial, are relevant to financial performance. Financial accounting - measures financial performance of org using standard conventions to prepare/distribute financial reports. Managerial accounting - uses financial and nonfinancial info as basis for making decisions within org: tend to be used internally. 1. 2 identify users of accounting info & how they apply it. Internal: those within org who use financial info to make day to day decisions, managers/employees, confirm past results and help make adjustments for future. External: activities: outside org who uses info to make decisions/evaluate entity"s performance. Investors, loan officers, govt auditors, irs agents etc.
