Study Guide Ch 1 - Things To Study In CH 1 Purpose of...

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Things To Study In CH. 1 - Purpose of Accounting: Accounting provides information to make decisions, or that is useful in answering such resource allocation questions. - Managerial Vs. Financial Accounting: Managerial Accounting Branch of accounting that provides information useful to internal decision makers and managers in operating an organization. Financial Accounting Accounting information designed to satisfy the needs of an organization’s external users, including business owners, creditors, and government agencies. GAAP The measurement rules used in the United States for financial accounting are called Generally Accepted Accounting Principles (GAAP). Historical Cost Concept Requires that most assets be reported at the amount paid for them (their historical cost) regardless of increases in market value.
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This note was uploaded on 10/03/2011 for the course BUS 222 taught by Professor Jennings during the Spring '07 term at University of Maine Orono .

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Study Guide Ch 1 - Things To Study In CH 1 Purpose of...

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