Financial and Managerial Accounting

Topics: Balance sheet, Generally Accepted Accounting Principles, Asset Pages: 4 (687 words) Published: February 25, 2013
Accounting is the system that measures business activities and process information into reports. •Accountant maintain, audit and prepare financial records for a person or a company. •Main careers in accounting - bookkeeper, auditor, financial advisor, taxation, carbon accountant and accountant etc… •Bookkeeping is recording financial recorders and summaries of financial transaction. Accounting is measuring business activities and process information into reports. •Main professional accounting association in Australia are:

CPA Australian
CPA – certified practising accountant
ICAA (the institute of chartered accountant in Australia)
CA – chartered accountant
NIA (National institute of Accountants)
PNA - professional national accountant
Taxation institute of Australia
FPA - financial planning association of Australia

The users of accounting information fall into 2 different users: External Users are the financial accountants from outside the business Internal Users are the managerial accountants from inside the business

External Users
Financial accountants are external users – individuals from outside the business. External users include regulatory authorities, suppliers, customers, bankers, competitors etc… Internal users
Managerial accountants are the internal users and work inside the business. They include the following people. -Owners of the business (sole traders, partners, and shareholders) -Managers of the business (decision makers, CEOs etc...)

-Employees of the business
The types of information accounting information users include the financial statement. The main financial statements are:
-Income statements (also known as, statement of financial performance, statement of comprehensive income)

Income income statement for the year ended 30 june 2011
Revenue (income) – expenses = net profit/lose

-Owners equity Statement
-Balance sheets (also known as financial position)
Statement of...
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