Professional Documents
Culture Documents
1. WHAT IS ACCOUNTING?
Accounting is a set of activities that translates day-to-day business transactions
into quantifiable information useful for decision-making.
F/S must be prepared in accordance with GAAP M/A Reports do not have to follow any rules
:
G = Generally
A = Accepted
A = Accounting
P = Principles
Publicly traded companies must have their F/S Managerial Accounting Reports do not have to be
verified by auditors. audited.
F/A is more concerned with Cost Assignment M/A is more concerned with Cost Behavior:
: As such with fixed costs and variable (marginal) costs.
As such with average costs and inventory valuation.
F/A will be useful to you as a future investor. M/A will be useful to you as a future manager.
6. WHO IS AN ENTREPRENEUR?
A person who organizes and manages any enterprise, especially a business, usually
with considerable initiative and risk.
8. ACCOUNTING IN A PICTURE
Accounting: Trunk
Marketing: Branch
Finance: Branch
Operations: Branch
Strategy: Branch