ACCT 351 Study Guide - Comprehensive Final Exam Guide - Accounting, Financial Statement, Retained Earnings
Document Summary
The accounting environment includes conditions, constraints, and influences that ate social, economic, political, and legal, all of which change over time. As a result, accounting theory and practices are always evolving to remain relevant. Accounting is best described by the following three essential characteristics: the identification, measurement and communication of financial information, about economic entities, to interested persons. Financial accounting is the process that culminates in the preparation of financial reports that cover all of a (cid:271)usi(cid:374)ess"s a(cid:272)ti(cid:448)ities, these are used (cid:271)(cid:455) (cid:271)oth i(cid:374)ter(cid:374)al a(cid:374)d e(cid:454)ter(cid:374)al parties. In contract managerial accounting is the process of identifying, measuring, analysing, and communication financial information to internal decision-makers. These are used to plane, evaluate and (cid:272)o(cid:374)trol a (cid:271)usi(cid:374)ess"s operatio(cid:374)s. Financial statements are the principal way of communicating financial information. As resources are limited, we generally try to conserve them, use them effectively and identify and encourage efficient use of them.
