Words 1500 - 1700
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.
Assignment
In a memo to your new assistant, Susan Thompson, 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 the income statement, statement of owners’ equity balance sheet, and cash flow statement, although generated in financial accounting, 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.
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Words 1500 - 1700You have recently hired a new assistant, Susan .docx
1. Words 1500 - 1700
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.
Assignment
In a memo to your new assistant, Susan Thompson, 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 the income statement, statement of
owners’ equity balance sheet, and cash flow statement, although
generated in financial accounting, 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.
