...Managerial accounting is concerned with providing information to managers-that is, people inside an organization who direct and control its operation. In contrast, financial accounting is concerned with providing information to stockholders, creditors, and others who are outside an organization. Managerial accounting provides the essential data with which the organizations are actually run. Managerial accounting is also termed as management accounting or cost accounting. Financial accounting provides the scorecard by which a company's overall past performance is judged by outsiders. Managerial accountants prepare a variety of reports. Some reports focus on how well managers or business units have performed-comparing actual results to plans and to benchmarks. Some reports provide timely, frequent updates on key indicators such as orders received, order backlog, capacity utilization, and sales. Other analytical reports are prepared as needed to investigate specific problems such as a decline in the profitability of a product line. And yet other reports analyze a developing business situation or opportunity. In contrast, financial accounting is oriented toward producing a limited set of specific prescribed annual and quarterly financial statements in accordance with Generally Accepted Accounting Principles (GAAP). (Ray H. Garrison Eric W Noreen 1999). Managerial accounting is managers oriented therefore its study must be preceded by some understanding of what managers do, the...
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...Accounting Summary Report Curline Registe BUS 599 Instructor Roberts July 14, 2015 Accounting Summary Report Write a three- to four-page accounting summary report (not including the title page) that presents the financial reports for the Lemonade Stand Business. As part of your report include a journal, Income statement, and Balance Sheet. In the business world, Accounting Summary has proven to be a big part of the daily activities of a company. An Accounting Summary can consists of a Journal, Income statement or Profit and loss, Company Snapshot, Statement of Cash Flows, Balance Sheet, Scorecard and an Audit log. Basically these statements are designed to give a breakdown of the different aspects of the organizations daily financial activities. This essay will focus mainly on the journal, Income statement, and Balance Sheet for the Lemonade Stand Business. It will summarize the accounting activities and briefly present the Lemonade Stand Financial reports for four different seasons. The journal gives details regarding the organizations financial transactions for four seasons. In general the journal is designed to show the entire record of every transaction on a daily basis including debits and credits (Wild, Shaw & Chaippetta, 2010). The transactions will go as far back as the when the owner started out with only $40 and the debits and credits that added up to $406.60. The journal is written in chronological order by dates. The journal shows revenues that came by way...
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...Mike knows that you have just received your Associate's Degree in Accounting at Kaplan University, he has asked for your help in evaluating the firm. Mike is not asking you to make a decision for him; he just wants you to help provide him with facts as you see them. Your task is to analyze the business and report your findings to Mike. Be sure to tell Mike everything that you can think of that will aid him once he takes over ownership from the seller. Tell him what he will need to deal with in terms of setting up his new business, and the challenges that he will face. Remember, this is your good friend, and you want him to succeed in this new venture. You will present Mike with a report with the following structure. Remember, the Final Project is required to have the following structure: Coversheet Executive Summary Regulations Management Finance and Accounting Financial Statements Problem Solving The Coversheet should contain the title of your report, the date of submission, and your name. The Executive Summary should provide an overview of your findings. After the Executive Summary, you will explore the five different areas of Tim’s business. For each of these areas, you will provide a detailed report that contains a title, summary, and action items. Title of Subsection: Name of the business area (Regulations, Management, Finance and Accounting, etc.) Summary: Provide a detailed summary of what you observed in this particular area of the business. Describe...
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...the purpose of providing high quality training to clients to improve the productivity and performance of participants. To analyse the business plan, we will be assessing the report in its relevant sections. Firstly, the cover sheet identifies the key element of the business name. However, other relevant details such as the author – assumed to be the joint owners Michael Chapman and Elliot Berkley – contact details and a brief statement of the purpose have all been incorrectly omitted. Accordingly, it appears that the cover page of the report is not fulfilling its objective and providing the reader with a comprehensive understanding of the report when first viewed. Accompanying the cover sheet is the executive summary. The general purpose of executive summaries is to provide a comprehensive summary of the reports features, which can be read in isolation. Hence, the executive summary begins with summarising the main points of the business plan. However, this has been undertaken in an extensive and incoherent manner. The executive summary then proceeds to outline the objectives – written guide, intended audience, scope – then follows with the objectives of the overall company. The mission and keys to success are also detailed in a concise and effective manner. Accordingly, overall the executive summary has failed to include the what the business plan is requesting from the reader. Secondary to this, it appears a description of the business and its structure has been neglected...
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...McDonalds, Fiscal Year 2012 Keith R. Jones Strayer University Accounting I Professor Togbenou November 25, 2013 1. Identify and explain the main sections of the annual report. The main sections of the McDonalds Corporations annual report consist of a 6 year Summary which provides the user with a brief overview of how the corporation has done over the previous 6 years which also includes the current year’s annual report. The report shows items that are on other parts of the annual report such as total revenues, net income, total assets and total shareholders’ equity. The 6 year Summary also shows items such results from company-operated and franchised restaurants giving a total under “system wide restaurants”. The 6 year Summary also shows franchised sales but notes that “franchised sales are not recorded as revenues by the company”. The information is provided to give an understanding of the corporations’ performance financially. The Management’s Discussion and Analysis of Financial Condition and Results of Operations provides the user with an overview as to a description of the business, strategic direction and financial performance for the U.S. and Europe. It also gives highlights from the year, and an outlook for the next or current year (2013) for the U.S. and Europe. The Consolidated Statement of Income provides total revenues through company operated restaurant sales and expenses which includes franchised restaurants-occupancy expenses and net...
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... | | |Principles of Accounting | Copyright © 2011, 2010, 2009, 2008 by University of Phoenix. All rights reserved. Course Description This course covers the fundamentals of financial accounting as well as the identification, measurement, and reporting of the financial effects of economic events on the enterprise. Financial information is examined from the perspective of effective management decision making with special emphasis on the planning and controlling responsibilities of practicing managers. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Weygandt, J. J. (2008). Financial accounting (6th ed.). Hoboken, NJ: John Wiley & Sons. All electronic materials are available on your student website....
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...Account Form The form of balance sheet that resembles the basic format of the accounting equation, with assets on the left side and liabilities and stockholders’ equity sections on the right side. Account Payable The liability created by a purchase on account. Account Receivable A claim against the customer created by selling merchandise of services on credit. Accounting An information system that provides reports to stakeholders about the economic activities and condition of a business. Accounting Equation Assets = Liabilities + Stockholders’ Equity Assets The resources owned by a business. Balance sheet A list of the assets, liabilities, and stockholders’ equity as of a specific date, Usually at the close of the last day of a month or a year. Business An organization in which basic resources (input), such as materials and labor, are assembled and processed to provide goods or services (output) to customers. Business Entity Concept A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business. Business Transaction An economic event or condition that directly changes an entity’s financial condition or directly affects its results of operations. Capital Stock The portion of a corporation’s stockholders’ equity contribution by investors (owner) in exchange for shares of stock. Certified Public Accountant (CPA) Public accountants who have met a state’s...
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...1. Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities. True False 2. Managerial accounting is the area of accounting that provides internal reports to assist the decision making needs of internal users. True False 3. The primary objective of financial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities. True False 4. The area of accounting aimed at serving the decision making needs of internal users is: Financial accounting. Managerial accounting. External auditing. SEC reporting. Bookkeeping. 5. External users of accounting information include all of the following except: Shareholders. Customers. Purchasing managers. Government regulators. Creditors. 6. Social responsibility: Is a concern for the impact of our actions on society. Is a code that helps in dealing with confidential information. Is required by the SEC. Requires that all businesses conduct social audits. Is limited to large companies. 7. A corporation: Is a business legally separate from its owners. Is controlled by the FASB. Has shareholders who have unlimited liability for the acts of the corporation. Is the same as a limited liability partnership. Is not subject to double taxation ...
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...Job Analysis Title: Assistant Manager Reports to: Owner, Supervisor Summary: The assistant manager at Wagon Wheel will direct and supervise employees engaged in sales, inventory taking, or in performing services for customers. ‘This position will monitor sales activities to ensure that customers receive good service and quality goods. This manager will watch the inventory stock and reorder when inventory drops to a specified level. Hire, train, and evaluate the workers in sales or marketing departments, promoting or firing workers when appropriate.” (O*Net Online, 2010) This manager examines merchandise to ensure that it is correctly priced and that it functions as advertised. Enforce safety, health, and security rules like ensuring there isn’t any lead paint. Work activities include dealing with complaints, settling disputes, and resolving conflicts in the workplace. Some tools used in this occupation include bar code reader equipment and security cameras. Some technology that the assistant manager uses at Wagon Wheel include calendar scheduling software and human resource software. “Normal daily tasks include planning budgets and authorizing payments and reviewing merchandise returns.” (O*Net Online, 2010) The most important daily task of the assistant manager at Wagon Wheel is assigning employees to specific duties. Job Duties: * Create schedules to ensure there is efficient staffing at all times. * Report staff hours to the payroll department. ...
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...the right type of information in achieving sustainability. It helps in reducing default, optimal rotation of portfolio, establishing sustainable interest rates, improving operational efficiency, generating reports at various levels for various stakeholders and review the progress. (Box 1). Common Shortcomings observed in the Information Management Practices: 1.) The basis formats are not comprehensive of them could be combined. 2) The flow and logistic aspects of transfer of information from Society to Federation to HQs and vice versa is not very efficient. 3) The reports produced by the MIS are not in line with the best practices information required. 4) There is no accurate aging analysis of all loans including the past due loans. At best, the aging analysis is approximate and there is no proper asset classification backed up by provisioning. 5) Clients are not classified as good, delinquent and defaulting borrowers based on (international best practices) criteria. 6) Credit history of the borrowers is not available. 7) Clear repayment schedules for borrowers at various levels do not exist. 8) Concise monitoring reports, tailored to the monitoring needs at various levels are not available. 9) There is no incorporation of the accrual system of accounting. 10) Status reports on repayments made by the intermediaries and HQs to semi -wholesalers and wholesalers is not tracked. 11) There is no integration of the network of federation and headquarters through a good and stable...
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...vital in the financial success for any company, especially in health care finance. Within this paper, a summary of the four elements of financial management, generally accepted accounting principles, and general financial ethical standards will be discussed. Summary of the Four Elements of Financial Management There are four main financial statements of a profit earning organization. They include the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet provides a snapshot of what an organization's owns and owes. This is displayed as assets and liabilities. The balance sheet provides a snapshot of a company’s net worth. The income statement provides an overview of the financial flow of an organization. This report is commonly extracted for a specific period of time rather than a single point in time. This statement is most often utilized in an audited financial report on a quarterly and annual basis. The statement of net worth calculates the non-operating expenses and allows the income statement to tie back to the balance sheet when the three statements are prepared for the same point in time. The cash flow statement displays how the cash enters and exits an organization (Baker & Baker, 2014). Summary of Generally Accepted Accounting Principles Generally Accepted Accounting Principles, also referred to as GAAP, are a set of guidelines established by the Financial Standards Board...
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...What is Annual Report? An annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance. The annual report is a report issued to a company's shareholders, creditors, and regulatory organizations following the end of its fiscal year. The report typically contains at least an income statement, balance sheet, statement of cash flows, and accompanying footnotes. It may also contain management comments, an audit report, and various supporting schedules that may be required by regulatory organizations. In addition to the auditor's report, an annual report commonly includes management's review of the operations of the firm and its future prospects, balance sheet, income statement (profit and loss account), cash flow statement, and other supporting documents also called annual accounts. Annual Report and Accounts - Contents – Chairmen’s statement – Directors’ report – Operating and financial review – Review of operations – Statement of corporate governance – Auditors report – Statement of directors’ responsibilities – Shareholder information – Highlights – Historical summary – Shareholder analysis Balance sheet • A balance sheet is a statement of the resources owned and controlled by a business at a single point in time. • It gives a snapshot of assets, liabilities and capital at a point...
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...Cookie Jar Reserves and Conservative Accounting ACCT 495 Professor Jastrzebski Fall 2013 Cookie Jar Reserves and Conservative Accounting SUMMARY O'Brian Software, a multimillion dollar software company, provides custom software systems, maintenance, support and training. Nick, a recent college graduate, just began working for the family run software company. After being hired to the firm's accounting department, Nick began to suspect unintentional and misleading revenue recognition . Nick believes his Aunt Amelia, founder and CEO, is an honest business woman and that her chosen CFO, Lee Marchetti, is also an honest man. Nick also knows that the financial statements have been reviewed and approved by the internal and external auditors and the firm's internal controls are effective. Despite these facts, Nick believes the firm has been smoothing earnings and creating inflated reserves. Most firms are usually charged with inflating earnings instead of under reporting, but both are equally illegal and unethical. After approaching Lee Marchetti with his concerns, Nick has informed his aunt, who has little accounting knowledge, of his suspected issues. Nick and Aunt Amelia are now faced with the decision as to whether or not the audit committee should be made aware of these concerns. ISSUES There are three issues at play regarding proper accounting and ethical business practices. The first issue is whether or not O'Brian...
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...created as a safe guard mechanism for the investor. The massive accounting fraud created by Enron and WorldCom in 2000, caused many individuals’ savings and retirement. The company falsified their earnings; disclose false report in their accounting statement, they used the investors’ money to generate personal wealth. This unlawful, unethical and negligent behavior of the company management shocks the financial world. The investor lost confidence and other company was losing their investors. The congress got involved. It was crucial to reduce this abuse and corruption with accounting practice, save the investors fund and other company. As a result the Congress created an Act called...
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...The Balance Sheet And Financial Disclosures Acct 301-B04 Spring 2014 Felicia Olagbemi This paper will discuss the balance sheet, its components and the purpose of financial disclosures. The balance sheet and financial disclosures are both included in the annual report. The balance sheet is also known as the statement of financial position. Financial disclosures and the balance sheet are closely related. Common financial disclosures are allowance for uncollectable accounts, information about common stock, summary of significant accounting policies, descriptions of subsequent events and related third-party transactions. The balance sheet includes the entity’s assets, liabilities and shareholders’ equity. The balance sheet has many components and is used to help portray the company’s financial position. ”Of all the financial statements issued by companies, the balance sheet is one of the most effective tools in evaluating financial health at a specific point in time.” (Schmidt, 2013) The balance sheet is also called the statement of financial position. It includes the assets, liabilities and shareholders’ equity for the entity. “A company’s balance sheet provides a snapshot of the assets it owns, liabilities it is responsible for, and whatever might be left over when subtracting assets from liabilities that represents owners' capital or shareholders’ equity.” (Fuhrmann, 2013) It is useful in providing information to assess the entity’s financial future. Though it is...
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