Скачать презентацию Chapter One Accounting Information for Decision Making Mc Скачать презентацию Chapter One Accounting Information for Decision Making Mc

Lecture_ch1.ppt

  • Количество слайдов: 19

Chapter One: Accounting: Information for Decision Making Mc. Graw-Hill/Irwin Copyright © 2006 by The Chapter One: Accounting: Information for Decision Making Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

The accounting process Economic activities Actions (decisions) Mc. Graw-Hill/Irwin Accounting “links” decision makers with The accounting process Economic activities Actions (decisions) Mc. Graw-Hill/Irwin Accounting “links” decision makers with economic activities ¾ and with the results of their decisions. Accounting information Decision makers Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Types of Accounting Information Financial Tax Managerial Mc. Graw-Hill/Irwin Copyright © 2006 by The Types of Accounting Information Financial Tax Managerial Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Information System Information Users Ÿ Investors Ÿ Creditors Ÿ Managers Ÿ Owners Ÿ Customers Information System Information Users Ÿ Investors Ÿ Creditors Ÿ Managers Ÿ Owners Ÿ Customers Ÿ Employees Ÿ Regulators -SEC -IRS -EPA Mc. Graw-Hill/Irwin Financial Information Provided Ÿ Profitability Ÿ Financial position Ÿ Cash flows Decisions Supported Ÿ Performance evaluations Ÿ Stock investments Ÿ Tax strategies Ÿ Labor relations Ÿ Resource allocations Ÿ Lending decisions Ÿ Borrowing Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Basic Functions of an Accounting System ŒCollect information regarding business transactions and record it. Basic Functions of an Accounting System ŒCollect information regarding business transactions and record it. Payment Car Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Basic Functions of an Accounting System ŒCollect information regarding business transactions and record it Basic Functions of an Accounting System ŒCollect information regarding business transactions and record it Mc. Graw-Hill/Irwin Classify similar transactions into useful reports. Ž Summarize and communicate information to decision makers. Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

External Users of Accounting Information • Owners • Creditors • Labor unions • Governmental External Users of Accounting Information • Owners • Creditors • Labor unions • Governmental agencies • Suppliers • Customers • Trade associations • General public Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

(Specific) Provide information about economic resources, claims to resources, and changes in resources and (Specific) Provide information about economic resources, claims to resources, and changes in resources and claims. Provide information useful in assessing amount, timing and uncertainty of future cash flows. Objectives of Financial Reporting Provide information useful in making investment and credit decisions. (General) Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Objectives of External Financial Reporting Balance Sheet Income Statement of Cash Flows Mc. Graw-Hill/Irwin Objectives of External Financial Reporting Balance Sheet Income Statement of Cash Flows Mc. Graw-Hill/Irwin The primary financial statements. Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Characteristics of Externally Reported Information A Means to an End Usefulness Enhanced via Explanation Characteristics of Externally Reported Information A Means to an End Usefulness Enhanced via Explanation Broader than Financial Statements Based on General-Purpose Assumption Historical in Nature Results from Inexact and Approximate Measures Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Users of Internal Accounting Information l Board of directors l Chief executive officer (CEO) Users of Internal Accounting Information l Board of directors l Chief executive officer (CEO) l Chief financial officer (CFO) l Vice presidents l Business unit managers l Plant managers l Store managers l Line supervisors Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved. Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Objectives of Management Accounting Information To help achieve goals and missions To help evaluate Objectives of Management Accounting Information To help achieve goals and missions To help evaluate and reward decision makers Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Characteristics of Management Accounting Information Timeliness A Means to an End Identify Decision Maker Characteristics of Management Accounting Information Timeliness A Means to an End Identify Decision Maker Measures of Efficiency and Effectiveness Oriented Toward Future Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Integrity of Accounting Information Institutional Features Ÿ Generally Accepted Accounting Principles (GAAP) Ÿ Financial Integrity of Accounting Information Institutional Features Ÿ Generally Accepted Accounting Principles (GAAP) Ÿ Financial Accounting Standards Board Ÿ Securities and Exchange Commission Ÿ Internal Control Structure Ÿ Audits Ÿ Legislation Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Integrity of Accounting Information Professional Organizations Ÿ American Institute of Certified Public Accountants Ÿ Integrity of Accounting Information Professional Organizations Ÿ American Institute of Certified Public Accountants Ÿ Institute of Management Accountants Ÿ Institute of Internal Auditors Ÿ American Accounting Association Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Integrity of Accounting Information Competence, Judgment and Ethical Behavior Ÿ Certified Public Accountants (CPAs) Integrity of Accounting Information Competence, Judgment and Ethical Behavior Ÿ Certified Public Accountants (CPAs) Ÿ Certificate in Management Accounting (CMA) Ÿ Certificate in Internal Auditing (CIA) Ÿ Code of Professional Conduct CPA Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Integrity of Accounting Information Careers in Accounting Ÿ Public Accounting Ÿ Management Accounting Ÿ Integrity of Accounting Information Careers in Accounting Ÿ Public Accounting Ÿ Management Accounting Ÿ Governmental Accounting Ÿ Accounting Education Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

End of Chapter One Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, End of Chapter One Mc. Graw-Hill/Irwin Copyright © 2006 by The Mc. Graw-Hill Companies, Inc. All rights reserved.