Financial Accounting
Paper details:
You have recently hired a new assistant, Susan Thompson, who previously worked in" rel="nofollow">in a fin" rel="nofollow">inancial accountin" rel="nofollow">ing office preparin" rel="nofollow">ing journal entries,
which provide
you with a recordin" rel="nofollow">ing of the day-to-day activities of the company and fin" rel="nofollow">inancial statements (in" rel="nofollow">income statement, statement of owners' equity
balance sheet, and
cash flow statement)- Although your new assistant has experience with and fully understands fin" rel="nofollow">inancial accountin" rel="nofollow">ing, she has no experience with
managerial
accountin" rel="nofollow">ing-
Part 1
In a memo to your new assistant, Susan Thompson, complete the followin" rel="nofollow">ing:
Explain" rel="nofollow">in to her the similarities and differences between fin" rel="nofollow">inancial and managerial accountin" rel="nofollow">ing-
Provide examples of managerial accountin" rel="nofollow">ing reports that she could expect to see within" rel="nofollow">in EEC, and explain" rel="nofollow">in how management might use the
in" rel="nofollow">information to make
decisions-
Keep in" rel="nofollow">in min" rel="nofollow">ind that although the in" rel="nofollow">income statement, the statement of owners’ equity balance sheet, and the cash flow statement are generated in" rel="nofollow">in
fin" rel="nofollow">inancial
accountin" rel="nofollow">ing, they are used to develop all of your managerial accountin" rel="nofollow">ing reports-
Examples of a few of those reports are the horizontal analyzes, vertical analyzes, and ratios-
Part 2
In a memo to the board of directors, discuss the in" rel="nofollow">information found in" rel="nofollow">in each of the followin" rel="nofollow">ing fin" rel="nofollow">inancial statements, and describe how
accountin" rel="nofollow">ing in" rel="nofollow">information is
used by managers for plannin" rel="nofollow">ing and control:
Balance sheet
Income statement
Statement of cash flows
Statement of stockholders’ equity