Management Accounting and Costing
Management or Cost Accounting is a management information system that analyzes data to provide information on the basis of administrative activity. The Accounting Accountant's concern is to present accounting information to the management in the most useful form.
Financial accounting is primarily a method of business results and financial reporting. It is not primarily about providing information on making business more efficient. This is particularly clear in the reports published by limited liability companies. Accounting standards and public law require that the company must prepare accounts for shareholders.
It is the financial manager's task to increase funding and control financial resources. Including the following resolutions:
(a) If the enterprise makes a loan from a bank or issues funds with the issue of shares?
(b) How much should I pay as dividends?
(c) When does the company spend money on new machines?
(d) How much should credit be given to customers?
(e) How much discount should be paid to early payment clients?
An enterprise's annual report should normally be audited by an independent company. In practice this often means that the members of the company designate a registered auditing firm to investigate the financial statements and whether they have a true and fair view of the company's results and financial position for the year by the end of the year.
Quality of Good Accounting Information
Here are some features that accounting information should be useful:
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