BBC 1 – Basic Business Concepts Financial Statements
- Balance sheet
- Cash flow
Accounting – A process of recording, processing,
- Income statement
analyzing
- Owner’s equity
- So the end users use it for decision - Note to financial statement
making
Managerial Accounting – focuses on internal
o End users;
Management - Used by managers or the management
Investors
Government
Financial Accounting – used by the external
Why is accounting a system?
users
- Because it has a cycle
External users;
o Analyzing
o Journaling - Government
o Posting - Investors
o Unadjusted Trial balance - Business owners
o Adjusting entries - Financial statements and governs
o Financial statements financial reports
o Closing entries
o Post closing trial balance
o Reversing entries Cost accounting – used by manufacturing
companies
- Mainly cost vs budget
- Balance sheet
- Cash flow
Accounting – A process of recording, processing,
- Income statement
analyzing
- Owner’s equity
- So the end users use it for decision - Note to financial statement
making
Managerial Accounting – focuses on internal
o End users;
Management - Used by managers or the management
Investors
Government
Financial Accounting – used by the external
Why is accounting a system?
users
- Because it has a cycle
External users;
o Analyzing
o Journaling - Government
o Posting - Investors
o Unadjusted Trial balance - Business owners
o Adjusting entries - Financial statements and governs
o Financial statements financial reports
o Closing entries
o Post closing trial balance
o Reversing entries Cost accounting – used by manufacturing
companies
- Mainly cost vs budget
