ACCT1101 - Lecture 1

A companys integrated accounting system produces

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ”) No prescribed rules Timeliness (Corp’ns Act, ASIC) historical (“Subjective”) historical and projected Level of Detail Summary quantitative More detailed and tailored to financial statements/ reports mgmt needs; quantitative & qualitative 18 Financial Statements/Reports Financial Financial statements are accounting reports that summarize and communicate financial information about a company primarily to external users. A company’s integrated accounting system produces three major statements: ◦ the income statement, ◦ the balance sheet, and ◦ the cash flow statement, ◦ as well as a supporting statement called the statement of changes in owners’ equity 19 Activities of Management and Related Management Accounting Reports Management Accounting Report Budget Management Activities P la nning Cost Analysis O p e ra ting Manufacturing Cost Report Eva lua ting F e e d b a c k 20 Let’s consider the text scenario: Let’s consider the text scenario: Megan and Ryan decide to start a business (Mum’s Biscuits) selling Megan and Ryan decide to start a business (Mum’s Biscuits) selling biscuits to local grocery stores. They have $10 000 to invest. biscuits to local grocery stores. They have $10 000 to invest. They will set up a business plan (we will cover this topic in more They will set up a business plan (we will cover this topic in more detail in Week 2 and 3), identifying their product, how they plan to detail in Week 2 and 3), identifying their product, how they plan to produce it and sell it etc. produce it and sell it etc. • What is their primary goal? What • What resources do they need to What start their business? start They identify resources needed to start their business: resources - Merchandise to sell (to be purchased from a bakery) - A place to operate their business & necessary equipment - A person to pick up product from the bakery (supplier) and take to the stores From identification of these resources Idea about their costs: Merchandise, rent, wages, equipment, vehicle expenses, supplies, electricity… How much can they sell? After some research they believe they can expect to sell $12 000 of biscuits each month. This would be revenue. Me g a n & R ya n n e e d e d a s ys te m to m e a s u...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online