Financial Accounting Essay

1. Differentiate broadly between financial accounting and managerial accounting. Financial accounting is the process of recording, summarizing and reporting business transactions over a period of time in order to prepare company financial reports for use by both internal and external parties such as investors and creditors. On the other hand, managerial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management in order to plan, control

Lecture 7 – Tutorial Questions Tutorial List: 7-1, 7-2, 7-3, 7-4, 7-5, 7-6, 7-7, 7-8, 7-9 7.1. Kristen Hope asks your help concerning an NSF check. Explain to Kristen (a) what an NSF check is, (b) how it is treated in a bank reconciliation, and (c) whether it will require an adjusting entry. 7.2. The bank portion of the bank reconciliation for Brasilia Company at October 31, 20X1 was as follows. BRASILIA COMPANY Bank Reconciliation

What are the major limitations of Financial Accounting? Explain with the help of Examples. What are the alternatives to overcome these limitations? Financial accounting can be defined as reporting of the financial position and performance of a firm through financial statements issued to the external users on a periodic basis. It is a field of finance that treats money as a means of measuring economic performance instead of treating it as a factor of production. It encompasses the entire system

CHAPTER 1: INTRODUCTION TO FINANCIAL ACCOUNTING 1.1 USE, PREPARATION AND CONCEPTS * Use: The information derived from financial accounting is used by managers, investors, bankers, financial analysts and accountants, helping them to learn how to use information effectively and to do their jobs better. This information is essential to accountants for the services they provide. * Preparation: to be effective users of accounting information, people need to know something about how and

STUDENT NO: …………………………... SEMINAR TUTOR …………………………... Introduction Accounting is concerned with providing both financial and non-financial information that will help decision makers to make good decisions. An understanding of accounting therefore requires an understanding of the decision making process and an awareness of the users of accounting information. The major purposes of accounting are to formulate overall strategies and long-run plans. Resource allocation decisions such

(iv) Financial Accounting versus Cost Accounting To understand the concept of cost accounting to the core, it is important to recognise initially as to what makes cost accounting different from financial accounting. The major differences between financial accounting and cost accounting are as follows: Basis of Distinction Financial Accounting Cost Accounting Objective The objective of financial accounting is to provide information about the overall financial position and performance of the business

It all began on October 2002 where the International Accounting Standards Board and Financial Accounting Board signed a memorandum of understanding that has come to be known as the “Norwalk Agreement”. Here the two boards met and decided to make their standards fully compatible and put it into practice and once they conquer their goal, they have to make sure it is maintained. But before I divulge into details regarding the future and presently achieved goals of the convergence, I would like to throw

Financial Accounting Companies operate to achieve varies goals. They may be interested in providing a healthy work environment for their employees, in reaching a high level of control, or making contributions to civic and social organization and activities. However, to meet these goals, a company must first achieve its two primary objectives: earning a satisfactory profit and remaining solvent. If a company failed to meet either of these objectives, it will not be able

additional examples of managerial and financial accounting information that can apply to Costco. Examples of Costco’s financial accounting information are revenue, gross margin percentage, operating income, operating margin percentage, net income, earnings per share, dividends, shares, operating cash flow, cap spending, free cash flow, working capital, tax rate percentage, net margin percentage, average asset turnover, return on assets percentage, average financial leverage, return on equity percentage

Management Accounting is a branch of accounting which refers to accounting information useful for management and acts as a decision-making support system. Its functions include planning, controlling, and decision-making in an efficient and effective manner. (Bhattacharyya, 2011) Management Accounting vs. Financial Accounting Management accounting and financial accounting are different in many ways. To begin with, the oldest difference between these two is that Management accounting provides information