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You have recently hired a new assistant, Susan Thompson, who
previously worked in a financial accounting office preparing
journal entries, which provide you with a recording of the day-
to-day activities of the company and financial statements
(income statement, statement of owners' equity balance sheet,
and cash flow statement). Although your new assistant has
experience with and fully understands financial accounting, she
has no experience with managerial accounting.
Part 1
In a memo to your new assistant, Susan Thompson, complete the
following:Explain to her the similarities and differences
between financial and managerial accounting. Provide
examples of managerial accounting reports that she could expect
to see within EEC, and explain how management might use the
information to make decisions. Keep in mind that although the
income statement, the statement of owners’ equity balance
sheet, and the cash flow statement are generated in financial
accounting, they are used to develop all of your managerial
accounting reports. Examples of a few of those reports are the
horizontal analyzes, vertical analyzes, and ratios.
Part 2
In a memo to the board of directors, discuss the information
found in each of the following financial statements, and
describe how accounting information is used by managers for
planning and control:Balance sheet Income statement
Statement of cash flows Statement of stockholders’ equity
You have recently hired a new assistant, Susan Thompson, who previou.docx

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You have recently hired a new assistant, Susan Thompson, who previou.docx

  • 1. You have recently hired a new assistant, Susan Thompson, who previously worked in a financial accounting office preparing journal entries, which provide you with a recording of the day- to-day activities of the company and financial statements (income statement, statement of owners' equity balance sheet, and cash flow statement). Although your new assistant has experience with and fully understands financial accounting, she has no experience with managerial accounting. Part 1 In a memo to your new assistant, Susan Thompson, complete the following:Explain to her the similarities and differences between financial and managerial accounting. Provide examples of managerial accounting reports that she could expect to see within EEC, and explain how management might use the information to make decisions. Keep in mind that although the income statement, the statement of owners’ equity balance sheet, and the cash flow statement are generated in financial accounting, they are used to develop all of your managerial accounting reports. Examples of a few of those reports are the horizontal analyzes, vertical analyzes, and ratios. Part 2 In a memo to the board of directors, discuss the information found in each of the following financial statements, and describe how accounting information is used by managers for planning and control:Balance sheet Income statement Statement of cash flows Statement of stockholders’ equity