MODULE #2 - BUSINESS ENVIRONMENT Flashcards
Internal users of accounting information
Owners
Managers
Employees
External users of accounting information
Investors
Lenders
Suppliers
Customers
Tax authorities
Government
Auditors
Public
PAGTLSIC
Types of accounting information classified as to users’ needs
General purpose accounting information
Special purpose accounting information
meet the common needs of statement user
General purpose accounting information
meet the specific needs of statement user
Special purpose accounting information
Branches of accounting
- Financial accounting
- Cost accounting
- Auditing
- Managerial accounting
- Accounting Education
- Accounting Research
- Government accounting
- recording and categorizing transaction
-generating financial statement
-financial statements should be accepted by
Generally Accepted Accounting Principle (GAAP)
Financial accounting
-managerial accounting
-commonly used in manufacturing industry
- assess company operations
cost accounting
2 types of auditing
external auditing
internal auditing
-Independent third party reviews company’s financial statement
external auditing
-evaluates how a business divides up accounting duties
internal auditing
-known as management accounting
-data about company’s operations to manager
managerial accounting
-deals with teaching of accounting
accounting education
-involves the careful analysis of economic event
accounting research
- accounting for the government
government accounting
types of business activities/operations
service
trading/merchandising
manufacturing
- rendering of services
service
- engages in buying and selling of goods
trading/merchandising
- engaged in the production of items to be sold
manufacturing
