Premium Essay

Financial Management Accounting Info

In: Business and Management

Submitted By leeleelee111
Words 269
Pages 2
Personal financial decisions may also involve paying for a loan, or debt obligations. The six key areas of personal financial planning, as suggested by the Financial Planning Standards Board, are:[1] 1.Financial position: is concerned with understanding the personal resources available by examining net worth and household cash flow. Net worth is a person's balance sheet, calculated by adding up all assets under that person's control, minus all liabilities of the household, at one point in time. Household cash flow totals up all the expected sources of income within a year, minus all expected expenses within the same year. From this analysis, the financial planner can determine to what degree and in what time the personal goals can be accomplished. 2.Adequate protection: the analysis of how to protect a household from unforeseen risks. These risks can be divided into liability, property, death, disability, health and long term care. Some of these risks may be self-insurable, while most will require the purchase of an insurance contract. Determining how much insurance to get, at the most cost effective terms requires knowledge of the market for personal insurance. Business owners, professionals, athletes and entertainers require specialized insurance professionals to adequately protect themselves. Since insurance also enjoys some tax benefits, utilizing insurance investment products may be a critical piece of the overall investment planning. 3.Tax planning: typically the income tax is the single largest expense in a household. Managing taxes is not a question of if you will pay taxes, but when and how much. Government gives many incentives in the form of tax deductions and credits, which...

Similar Documents

Premium Essay

Acf 2011 Sem 2

...School The University of Adelaide University of South Australia Open Universities (conferred by Uni of SA) TASMANIA University of Tasmania VICTORIA Australian Catholic University Cambridge International College Carrick Higher Education Deakin University Holmes Institute Holmesglen Institute of TAFE La Trobe University Melbourne Institute of Technology Monash University Northern Melbourne Institute of TAFE RMIT University Swinburne University of Technology The University of Ballarat The University of Melbourne Victoria University WESTERN AUSTRALIA Curtin University of Technology Edith Cowan University Murdoch University The University of Notre Dame Australia University of Western Australia SINGAPORE Nanyang Technological University Singapore Management University Page 3 3 3 3 3 4 4 4 4 4 5 5 5 6 6 6 7...

Words: 16200 - Pages: 65

Premium Essay

Bp Study Guide

...ACG 3401 Study Guide Exam 1 Accountants Roles * Management accountant * Internal auditor * Information systems auditor * External auitor * Tax accountant * Fraud examiner * Managerial Accountant * Provides info for mngmt decisions * Knowledge base: * * * * Business processes * Accounting information sustems * Internal controls * Managerial accouting techniques * Impact of accounting on behaviors Advocate for best info possible for making the best decision for the firm IMA Information criteria: 1. 2. 3. 4. Forward looking 5. Timely 6. Responsibility oriented Planning Systems (budgets) control systems (implement the course of action and evaluate) Management accounting answers questions related to : * * * * * Important customers ( profitability) * Substitute products * Critical capability * Funding ( growth) Value ( Adam Smith) * Value in use- derive value by using the product * Value in exchange- derive value from the exchange of that product for another good or service. Generic Value Chain Model: 1. 2. 3. 4. *Customer need identitified* 5. Identify the market and create the product/ service ( innovation cycle) 6. Build the product or service and deliver the product or service ( operations cycle) 7. Service the customer ( post sales service......

Words: 2656 - Pages: 11

Premium Essay

Notes

...Lesson 1 Chapter 1 LIFA 1.1 WHAT IS ACCOUNTING? · Accounting- an information system that identifies, measures, records and communicates understandable, relevant, reliable, and comparable information about an organization’s economic activities. · Recordkeeping, or bookkeeping, is the recording of financial transactions, either manually or electronically, for the purpose of creating a reliable bank of data · Primary objective of accounting- to provide useful info for decision-making · Accounting info results from the accounting activities of identifying, measuring, recording, reporting, and analyzing economic transactions. 1. What is the major objective of accounting? · Accounting is an information and measurement system that identifies, measures, records, and communicates understandable, relevant, reliable, and comparable information to people that helps them in making better decisions. It helps people in business to identify and react to investment opportunities, and better assess opportunities, products, investments, and social[->0] and community responsibilities. 2. Distinguish between accounting and recordkeeping. · Recordkeeping is the recording of financial transactions and events, either manually or electronically. While recordkeeping is essential to data reliability, accounting is this and much more. Accounting includes identifying, measuring, recording, reporting, and analyzing economic events and transactions. It involves interpreting information, and......

Words: 5455 - Pages: 22

Free Essay

Chapter 1 Notes

...Chapter 1: Introduction to Accounting Information Systems Business Processes and Accounting Information Systems • Business Process: sequence of activities performed by a business for acquiring, producing, and selling goods and services o Used by accountants and others • Transaction Cycles: group related events that typically occur in a particular sequence o Acquisition (purchasing) cycle = purchasing and paying for goods or services o Conversion cycle = transforming resources acquired into goods and services o Revenue cycle = providing goods or services to customers and collecting cash • Management Information System (MIS): system that captures data about an organization, stores and maintains the data, and provides meaningful info for management • Accounting Information System (AIS) is a subset of an MIS • Data captured by the MIS are aggregated, summarized, and organized to produce information that helps an organization monitor and control business processes Scope of an Accounting Information System • AIS provides accounting and financial information, and other information obtained in the routine processing of accounting transactions • It tracks info about sales order, sales in units and dollars, cash collections, etc. • Enterprise Resource Planning System (ERP): business management system that integrates all aspects of a firm’s business process Uses of AIS • Producing External......

Words: 618 - Pages: 3

Premium Essay

Acct 245 Exam 1 Notes

...Introduction to Managerial Accounting 1. Identify managers’ four primary responsibilities * Planning involves setting goals and objectives for the company and determining how to achieve them. * Directing means overseeing the company’s day-to-day operations. Management uses product cost reports, product sales information, and other managerial accounting reports to run daily business operations. * Controlling means evaluating the results of business operations against the plan and making adjustments to keep the company pressing towards its goals. * Making decisions: management is continually making decisions while it plans, directs, and controls operations. 2. Distinguish financial accounting from managerial accounting Managerial Accounting | Financial Accounting | Internal Users such as managers | External Users such as creditors, stockholders, and govt regulators | To help managers plan, direct and control business operations and make business decisions | To help external users make investing and lending decisions | Any internal accounting report deemed worthwhile by management | Financial Statements | Management determines what it wants in a report, and how it wants it formatted. Reports are prepared only when management believes the benefit of using the report exceeds the cost of preparing the report. | Generally accepted accounting principles (GAAP) determines the content and format of financial statements | While some info is......

Words: 2149 - Pages: 9

Premium Essay

Principle Accounting, and Recognition and Measurement Issues

...DEFENCE OF HISTORICAL COST ACCOUNTING i. Historical cost is relevant in making economic decisions. * Ijiri present 3 reasons historical cost is relevant for making decision * It effect the evaluation n selection of decision rules. It used the past info to measures the quality of their past decisions. * Provides input for satisficing notion where some managers make decisions that will support expected or satisfactory outcome. They are consider how much has already earned rather than how much mote they can earn. * It is used bcoz it imposed on decision makers by their environment. Eg: taxation decision n cost plus contract. ii. Historical cost is based on actual, not merely possible transaction. * Record done based on actual transactions made. * Ijiri- it possible to prepared a balance she on the basis of year-end market price without references to actual transactions. * Historical cost provides evidences for determining how efficiency management has meet their responsibilities. iii. Through history, FS based on historical cost have been found to be useful. * Mautz – “if whose who make management n investment decision had found financial reports based on historical cost useful over the years, changes in acctg would long since have been mad” iv. The best understood concept of profit is the access of selling price over historical cost. * People understand the basic notion of actual cost compared to...

Words: 3307 - Pages: 14

Premium Essay

Report on Mis Structure

...| Structure Based on Management Activity | 6 | Structure Based on Organizational Functions | 12 | Applications Based on MIS | 18 | References | 20 | Introduction Management information system broadly refers to a computer-based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization. MIS, or Management Information Systems, are used to manage the data created within the structure of a particular business. These systems store the data and allow the business to manipulate this data. It is the study of people, technology, organizations and the relationship among them. MIS can be defined as the study of how individuals, groups and organizations evaluate, design, implement, manage and utilize systems to generate information to improve efficiency and effectiveness of decision making. The concept of MIS gives high regard to the individual and his ability to use information. While analyzing the data, it relies on many academic disciplines. These include the theories, principles and concepts from the Management Science, Psychology and Human Behavior, making the MID more effective and useful. These academic disciplines are used in designing the MIS, evolving the decision support tools for modeling and decision - making. The concept, therefore, is a blend of principle, theories and practices of the Management, Information and System giving rise to single product known as Management Information System......

Words: 2302 - Pages: 10

Premium Essay

Management Accounting

...NATURE OF MANAGEMENT ACCOUNTING [SUMMARY] What is Management Accounting? Management Accounting is the process within an organization that provides information used by an organization’s managers in planning, implementing and controlling the organization’s activities. Management Accounting as One Type of Information Information is a fact, datum, observation, perception or nay other thing that adds to knowledge. An organization’s day-to day activities requires a considerable amount of operating information. This information provides the raw materials for the summarized information that is reported in the financial accounting and management accounting processes. Management Accountants Those employees of an organization who are responsible for the design and operation of the management accounting system are called management accountants. Treasurer – responsible for more outward directed tasks such as arranging loans and other external sources of funds. Steps to become a Certified Management Accountant File an application for admission and register for the CMA examination Pass all four parts of the CMA examination within a three year period Satisfy the experience requirement of two continuous years of professional experience in management and/or financial accounting prior to or within seven years of passing the CMA examination. Comply with the standards of ethical conduct for practitioners of management accounting......

Words: 835 - Pages: 4

Premium Essay

Accounting 200 Exam

...Accounting 200 Review for Exam 1 Chapter 1: 1. Forms of Business Organizations: a. Sole Proprietorship i. Business owned by a single person ii. Ex. If you want to start a business without outside investors b. Partnership iii. Business owned by two or more persons iv. Ex. If you want to start a business with a friend you can form a partnership c. Corporation v. Completely different from proprietorship or partnership vi. Entity that is legally separate from its owners and involves outside investors in the business through issuance of shares vii. External funding is raised when individuals purchase shares of ownership 1. Typically referred to as common stock 2. Each share of stock represents a unit of ownership 2. What information would a company’s investors and creditors be interested in knowing to make informed decisions? d. Investors and creditors want to know about the company’s resources and their claims to those resources 3. Basic Accounting Equation e. Assets = Liabilities + Stockholders’ Equity f. Assets viii. Resources owned by the company ix. Land, building, equipment, cash, inventory, etc. g. 2 parties of the company claim the resources x. Creditors xi. Investors h. Liabilities xii. Amounts owned to creditors xiii. Ex. Amounts owed to bank,......

Words: 1378 - Pages: 6

Free Essay

Business Environment

...(BEC) | |Area |Current CSOs |New CSOs | |Area I |Business Structure (17-23%) |Corporate Governance (16-20%) | |Area II |Economic Concepts (8-12%) |Economic Concepts and Analysis (16-20%) | |Area III |Financial Management (17-23%) |Financial Management (19-23%) | |Area IV |Information Technology (22-28%) |Information Systems and Communication (15-19%) | |Area V |Planning and Measurement (22-28%) |Strategic Planning (10-14%) | |Area VI |N/A |Operations Management (12-16%) | Controls over Business Processes •         segregation of duties: for each transaction cycle, the functions of authorization, approval, execution (custody of assets) and recordkeeping should be segregated (manual- different individuals performing functions, technology-based- controlling access and passwords) Sales & Collections Business Process |Risk |Nature of Process |Examples Controls ......

Words: 1757 - Pages: 8

Premium Essay

Student

...MANAGEMENT ACCOUNTING: AN OVERVIEW Learning Objectives      Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 2 Learning Objectives      Distinguish between managerial & financial accounting. Understand the evolution of management accounting. Explain about the IFAC model. Understand how managers can use accounting information to implement strategies. Explain about Relevant Lost & Relevant Regained. 3 Accounting System (accumulates financial and managerial accounting data) Managerial Accounting Information for decision making, and control of an organization’s operations. Internal Users Financial Accounting Published financial statements and other financial reports. External Users Managerial Accounting Users of information Managers within company Regulation Financial Accounting Interested outside parties Required. Must comform to Not required because for internal GAAP which is regulated by use only FASB and SEC. Basic accounting system plus Almost exclusively from the Source of Data various other sources basic accounting system Reports often focus on subunits. Reports focus on the enterprise Nature of Reports Based on a combination of in its entirety. Based......

Words: 2550 - Pages: 11

Premium Essay

Free Cfa Mind Maps Level1

...All CFA Institute members and candidates are required to comply with the Code and Standards Basic structure for enforcing the Code and Standards The CFA Institute Bylaws primary principles Based on two Fair process to member and candidate Confidentiality of proceedings Rules of Procedure Maintains oversight and responsibility The CFA Institute Board of Governors Through the Disciplinary Review Committee (DRC) Is responsible for the enforcement of the Code and Standards Conducts professional conduct inquiries Structure of the CFA Institute Professional Conduct Program Professional Conduct program (PCP) The CFA Designated Officer Selfdisclosure An inquiry can be prompted by several circumstances Directs professional conduct staff Written complaints Evidence of misconduct Report by a CFA exam proctor jim do Interviewing The Professional Conduct staff conducts an investigation that may include cf a. 1. Code Of Ethics And Standards Of Professional Conduct Collecting documents and records in support of its investigation Conclude the inquiry with no disciplinary sanction Issue a cautionary letter If finding that a violation of the Code and Standards occurred, the Designated Officer proposes a disciplinary sanction ay to Process for the enforcement of the Code and Standards When an inquiry is initiated Upon reviewing the material obtained during the investigation, the Designated Officer may .c Requesting a written explanation from......

Words: 5900 - Pages: 24

Premium Essay

Investment Analysis Summary

...Analysis for financial management (Robert C. Higgins)  Summary of the used chapters in the lecture (WM0609LR)  written by: Jorris Van Gestel   Chapter 1 Interpreting financial statements  Accounting Information provided by 3 annual reports: Balance Sheet Cash-Flow statement Income statement   Figure 1 Cash flow­production cycle  (Operating) working capital: movement of cash into inventory  Investment: flow from cash into new fixed assets  Depreciation: the loss in value of fixed assets ⇒ increase in value of merchandise made + needed for  growth  Solvency: ability to have cash to buy fixed assets and inventory (outflow cash)  The balance sheet  Equity= assets - liabilities current assets cash inventories Financial statements: Balance sheet current liabilities ! ! ! long-term liabilities equipment plant ! ! total shareholders equity stock ! long-term debt ! accounts payable ! acc receivable fixed assets retained earnings ! total assets x total liabilities + equity x Figure 2 example of a balance sheet    Financial snapshot: 1 moment in time  Assets against the claims    Liability: obligation to deliver something of value in the future  Equity: difference between assets and liabilities  Liquidity: speed at which an item can be turned into cash    Accounting: income statement Assets and liabilities are listed in order of decreasing liquidity  ‐ Current: liquidity 1 year  Earnings Before Interest, Taxes, Depreciation,......

Words: 4665 - Pages: 19

Premium Essay

Formulas

...Analysis for financial management (Robert C. Higgins)  Summary of the used chapters in the lecture (WM0609LR)  Written by: Joris Van Gestel    Chapter 1 Interpreting financial statements  Accounting Information provided by 3 annual reports: Balance Sheet Cash-Flow statement Income statement   Figure 1 Cash flow­production cycle  (Operating) working capital: movement of cash into inventory  Investment: flow from cash into new fixed assets  Depreciation: the loss in value of fixed assets ⇒ increase in value of merchandise made + needed for  growth  Solvency: ability to have cash to buy fixed assets and inventory (outflow cash)  Financial statements: Balance sheet The balance sheet  Equity= assets - liabilities current assets current liabilities cash ! inventories ! acc receivable ! equipment ! plant accounts payable ! ! fixed assets long-term liabilities long-term debt ! total shareholders equity stock ! retained earnings ! total assets x total liabilities + equity x Figure 2 example of a balance sheet    Financial snapshot: 1 moment in time  Assets against the claims    Liability: obligation to deliver something of value in the future  Equity: difference between assets and liabilities  Liquidity: speed at which an item can be turned into cash    Accounting: income statement Assets and liabilities are listed in order of decreasing liquidity  ‐......

Words: 4665 - Pages: 19

Premium Essay

Science

...diploma as main-campus students. No ACT, SAT, GRE or GMAT required. With 24/7 access to the online classroom, you’ll study at your convenience as you work toward earning one of the following respected degrees: AA in Business Admin AA in Healthcare Management AA in Marketing BA Business Admin/Accounting BA Business Admin/Computer Information Systems BA Business Admin/Healthcare Management BA Business Admin/Management BA Business Admin/Marketing MBA MBA/Accounting MBA/Accounting & Finance MBA/Finance MBA/Healthcare Management MBA/Information Technology Management MBA/International Business MBA/Internet Marketing MBA/Management MBA/Marketing MBA/Project Management MS/Supply Chain Management Attend a U.S. News & World Report-Ranked University 100% Online. Whether you’re just starting out or looking to get ahead in your business administration career, earning a degree from Florida Tech can help. Regionally accredited and ranked a Tier 1 Best National University by U.S. News & World Report, Florida Tech has been preparing students for success for over 50 years, helping them to achieve more both personally and professionally. Yes! I'd like a free financial aid guide and more information! *Indicates required field. *Type of Program Interested in:Select UNDERGRADUATE DEGREESAssociate of Arts AccountingAssociate of Arts in Applied PsychologyAssociate of Arts Business AdminAssociate of Arts Criminal......

Words: 553 - Pages: 3