Introduction to Accounting |
Main users of accounting information are external users such as investors and owners, creditors and taxing authorities. Another group of users are internal business employees suh as managers and business executives tasked with responsibilities of running the business. Accounting also comes in two forms, one provide information to external users in the form of finacial statements such as Balance sheets, Income Statement, and Cash Flow Statement. This kind of Accounting is normally called "Financial Accounting". Another form of accounting is mainly used by managers tasked with the responsibility of running the business. This information is mainly used for decision making and evaluating the businesses' financial and operational health. This form of accounting is called "Managerial Accounting" and is usually accomplished through custom-designed internal reports. Do not worry too much about the terms used, they will be discussed in detail in the next postings. |
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Introduction to Accounting
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