StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Accounting for managers - Essay Example

Cite this document
Summary
Companies furnish financial data for their stakeholders using the standard accounting principle. “Companies that follow GAAP maintain their accounting…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Accounting for managers
Read Text Preview

Extract of sample "Accounting for managers"

Accounting for Managers By October 3, October 3, Accounting for Managers The field of finance and accounting is all about using limited data in the most efficient manner to make future decisions. Companies furnish financial data for their stakeholders using the standard accounting principle. “Companies that follow GAAP maintain their accounting records using accrual basis accounting.” (Reimers 2007)As the name suggests the accrual basis of accounting differs from the cash basis of accounting.

“Accrual basis accounting means that transactions that change a company’s financial statements are recorded in the periods in which they occur, even if cash was not exchanged.” (Kimmel, Kieso, and Weygendt 166) The managers are required to use the accrual basis of accounting because it exhibits a true picture of the financial statements comparable to that of the other businesses. This method requires fewer adjusting entries thus saving time and calculations. Different businesses have different policies in terms of payment and collections, this method ignores these time difference and focuses on the actual standing of the company based on the transactions rather than cash received or paid.

However, this method requires accounting estimates for example provisions for bad debt, historical price adjustments etc because of the time lapse between the occurrence of transaction and the cash received. Thus this method is required by the GAAP and managers use it because of its completeness, as it gives a comprehensive and comparable view of the firm’s financial standing in the market.Reference CitedKimmel, Paul D, Donald E Kieso, and Jerry J Weygendt. Financial Accounting - Tools for Business Decision Making. 6th. New Jersey: John Wiley and Sons Inc., 2011. 166.

Reimers, J. Financial Accounting. New Delhi: Pearson Education Inc., 2007. 624.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Accounting for managers Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Accounting for managers Essay Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1580875-accounting-for-managers
(Accounting for Managers Essay Example | Topics and Well Written Essays - 250 Words)
Accounting for Managers Essay Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1580875-accounting-for-managers.
“Accounting for Managers Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1580875-accounting-for-managers.
  • Cited: 0 times

CHECK THESE SAMPLES OF Accounting for managers

Accounting for Managers: Generally Accepted Accounting Principles

Accounting for managers Institutional Affiliation Accounting for managers A.... Differentiate among each of the following types of accounting—financial, managerial, cost, public, internal auditing, governmental or not-for-profit accounting (fund accounting), tax and international.... hellip; There are different types of accounting depending on the type of information produced and for a particular or specialized user....
6 Pages (1500 words) Research Paper

The Analysis of Dell Incorporated

?Managerial Accounting for managers.... filed with the SEC on February 25, 2005.... Furthermore, the paper will show the various sections that are being analyzed and why Dell, Ic.... With so little inventory manages to keep such high profits. In… will be examined.... The analysis will show items that effect Dell greatly, such as their strategy, what risks they take, etc....
3 Pages (750 words) Assignment

Basic CVP Analysis - Fashion Shoe Company

et al, Managerial Accounting for managers, 2/e “Cost Volume Profit”, Pp 122-68, McGraw Hill Hightstown (2010).... The company is unique in that its numerous styles of shoes that are all sold at the same fixed price.... Currently, sales personnel in the shops are paid a commission of… Utilizing Cost Volume Profit (CVP) Analysis, I have been asked to examine their Shop number 48 with various scenarios in order to determine Basic CVP Analysis John Jones The Fashion Shoe Company is a chain of women's shoe shops around the country with more than fifty stores....
2 Pages (500 words) Assignment

Financial statements

Accounting for managers, New Age International.... Last part of financial statement is “notes to the financial statements” which provide detailed workings and disclosures of accounting heads that are presented in other components of financial statements (Ramgopal, 2009)....
1 Pages (250 words) Essay

Accounting Practical Set

Accounting for managers: For VTU.... Accounting for managers: For VTU.... Cash flow statement could be characterized as an Finance and accounting accounting Practical Set Executive Summary This report will provide an analysis of the cash flow ment and income ment.... Income Statement might be characterized as a financial statement that measures an organizations financial execution over a particular accounting period....
2 Pages (500 words) Assignment

Users of Accounting Information

managers are also users interested in the accounting information.... The accounting information helps the managers in the performance measurement.... managers are encountered with economic decisions that should be made regarding the business which require... accounting is the art of collecting, recording, summarizing and reporting accounting information in form of financial statements to various stakeholders both internal and external (Schneier, 2013)....
4 Pages (1000 words) Essay

Accounting Information and Decision Making

Accounting for managers: Interpreting Accounting Information for Decision- Making.... It shows the current and fixed assets as well as the current and accounting Information and Decision Making Question The main financial ments are the income ment, the cash flow statement, the balance sheet and the owner's equity statement.... This is due to the double entry effect in accounting whereby an amount is removed from one account and put into another....
1 Pages (250 words) Assignment

The Types of Information and its Value in Accounting for Managers

The paper "The Types of Information and its Value in Accounting for managers" states that in the modern business market, a firm's financial statements are used in order to identify the firm's position in the market but mostly its potentials for future growth.... In Britain, accounting was gradually developed under the needs of the government to have a clear view of the activities of the firms operating across the country.... The country's Courts have also participated actively in the development of accounting principles through the interpretation and application of the relevant law in any dispute that was brought before them....
11 Pages (2750 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us