ACC10007 Lecture Notes - Lecture 3: Cash Flow Statement, Financial Statement, Balance Sheet
Financial info for decision making
• Financial accounting
o
o Identifying the main sers of accounting information
o Brief review of decision making process
o Overview of three main accounting reports
• Management accounting
o Internal use of data
• Decision making, planning and control
o Planning is essential for business success
o Prudent decision making is closely linked to effective planning
o Planning covers both long term and short term scenarios
o Plans are normally adapted to changing circumstances
o Planning involves making decisions about the best course of action
• Steps in the planning process
o Setting the objectives or mission of the business-detailing what the business
is trying to achieve
o Setting long term plans-describing how the business will set out to achieve its
long term objectives
o Setting detailed short term plans or budgets-typically financial plans for one
year ahead.
• Control
o The process of making planned events actually occur
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