W1 - Managerial Accounting.pdf - Managerial Accounting Week...

Managerial Accounting
Week 1 – An Overview of Managerial Accounting and the role of an accountant in the organization
Prof. Darina Saxunová PhD

Managerial accounting: definition
(or management accounting or cost accounting )
• “ is the process of identifying, measuring and communicating economic
information to permit informed judgments and decisions by users of the
information ” (Colin Drury);
• is a field of accounting that provides economic and financial information for
managers and other internal users;
• is the process of identifying, measuring, analyzing, interpreting, and
communicating information to managers for the pursuit of an organization’s
goals;
The management of an organizatio performs three broad functions :
• Planning
• Directing and motivating
• Controlling
n

outside inside

Managerial accounting vs. Financial Accounting

PAST
FUTURE
FINANCIAL
ACCOUNTING
PERIODS
(CONVENTIONALLY STATED:
365 DAYS)
BUSINESS
SETUP
ADJUSTING
ENTRIES
BUSINESS
END
Recording
Accounts
Method : Double-Entry System
T-Accounts : Debit & Credit
Books : Ledger & Journal
Accounting Equation
1 2 3
Trial
Balance
- Adjusting
- Closing
- Reversing
Entries
Statements
Income Statement
Balance Sheet
Cash Flow Statement
Statement of changes in Owner’s Equity
4
Business
Analysis
Financial Balance Sheet