Account Week One
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- Date Submitted: 03/11/2013 04:16 PM
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Financial Accounting vs. Managerial Accounting
Financial accounting reports are prepared for the use of external parties such as shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization.
Financial accounting is mandatory; that is, it must be done. Various outside parties such as Securities and Exchange Commission (SEC) and the tax authorities require periodic financial statements. Managerial accounting, on the other hand, is not mandatory.
How do you think learning accounting would help you in your professional or personal life?
In your personal life, accounting gives you financial awareness. Once you are aware of your finances, you can take the steps to organize them. An effective accounting system will allow you to not only budget properly but also to maximize deductions when you file your returns.
Is bookkeeping and accounting are same?
Book keeping is the recording of financial transactions and events, either manually or electronically. While recordkeeping is essential to data reliability, accounting is this and much more.
Accounting includes identifying, measuring, recording and reporting and analyzing economic events and transactions. It involves interpreting information, and designing information systems to provide useful reports that monitor and control an organization's activities.
As you have learned in this week’s readings the Accounting Equation is Assets = Liabilities + Owners’ Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation.
It depends on the situation; I feel that the accounting equation could be true in most instances but not all.
Accounting Equation is: Assets = Liabilities + Owners’ Equity.
I invested $5,000.00 of my own money into my Cleaning Service. I received $3,000.00 from other investors.
The equation would look like this: Assets...
Financial accounting reports are prepared for the use of external parties such as shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization.
Financial accounting is mandatory; that is, it must be done. Various outside parties such as Securities and Exchange Commission (SEC) and the tax authorities require periodic financial statements. Managerial accounting, on the other hand, is not mandatory.
How do you think learning accounting would help you in your professional or personal life?
In your personal life, accounting gives you financial awareness. Once you are aware of your finances, you can take the steps to organize them. An effective accounting system will allow you to not only budget properly but also to maximize deductions when you file your returns.
Is bookkeeping and accounting are same?
Book keeping is the recording of financial transactions and events, either manually or electronically. While recordkeeping is essential to data reliability, accounting is this and much more.
Accounting includes identifying, measuring, recording and reporting and analyzing economic events and transactions. It involves interpreting information, and designing information systems to provide useful reports that monitor and control an organization's activities.
As you have learned in this week’s readings the Accounting Equation is Assets = Liabilities + Owners’ Equity. Is the accounting equation true in all instances? Provide sample transactions from your own experiences to demonstrate the validity of the Accounting Equation.
It depends on the situation; I feel that the accounting equation could be true in most instances but not all.
Accounting Equation is: Assets = Liabilities + Owners’ Equity.
I invested $5,000.00 of my own money into my Cleaning Service. I received $3,000.00 from other investors.
The equation would look like this: Assets...