Kế toán, kiểm toán - Chapter 1: Accountinginformation for decision making

AccountingInformation for Decision MakingChapter 1AccountingInformationThe Accounting ProcessDecision MakersEconomic ActivitiesActions (decisions)Accounting links decision makers with economic activities ¾ and with the results of their decisions.Reported Results of Actions (decisions)Types of Accounting InformationFinancialManagementTaxAccounting SystemsAn accounting system consists of the personnel, procedures, technology, and records used by an organization to develop accounting information and to communicate this information to decision makers.Basic Functions of an Accounting System Summarize and communicate information to decision makers. Classify similar transactions into useful reports. Interpret and record business transactions.Components of Internal ControlControl EnvironmentRisk AssessmentControl ActivitiesInformation and CommunicationMonitoringExternal Users of Accounting InformationOwnersCreditorsPotential investorsLabor unionsGovernmental agenciesSuppliersCustomersTrade associationsGeneral publicProvide specific information about economic resources, claims to resources, and changes in resources and claims.Provide information useful in assessing amount, timing and uncertainty of future cash flows.Provide general information useful in making investment and credit decisions.Objectives of External Financial ReportingObjectives of External Financial ReportingThe primary financial statements.Balance SheetStatement of Cash FlowsIncome StatementCharacteristics of Externally Reported InformationA Means to an EndBroader than Financial StatementsHistorical in NatureResults from Inexact and Approximate MeasuresBased on General-Purpose AssumptionUsefulness Enhanced via ExplanationUsers of Internal Accounting InformationBoard of directorsChief executive officer (CEO)Chief financial officer (CFO)Vice presidentsBusiness unit managersPlant managersStore managersLine supervisorsObjectives of Management Accounting InformationTo help achieve goals and missionsTo help evaluate and reward decision makersCharacteristics of Management Accounting InformationTimelinessIdentify Decision MakerOriented Toward FutureMeasures of Efficiency and EffectivenessA Means to an EndCompetence, Judgment and Ethical BehaviorCertified Public Accountant (CPA)Certified Management Accountant (CMA)Certified Internal Auditor (CIA)Ethical behavior is the cornerstone of the accounting profession. Careers in AccountingPublic AccountingManagement AccountingGovernmental AccountingAccounting EducationEnd of Chapter 1