INTRODUCTION TO MANAGEMENT ACCOUNTING

ACCOUNTING

is the process of recording, classifying, and summarizing financial transactions to provide useful information for decision-making.

WHY DO WE NEED ACCOUNTING?

Accounting provides timely and accurate financial information concerning the activities of an enterprise to a diverse group of people such as shareholders managers creditors tax authorities

FINANCIAL ACCOUNTING

Financial accounting is a branch of accounting that focuses on preparing financial statements for external users, providing a clear picture of the financial performance and position of a company over a specific period.

WHY IS FINANCIAL ACCOUNTING IMPORTANT?

Financial accounting is important because it ensures the transparency and reliability of financial information, aids in compliance with regulations, and serves as a basis for decision-making by stakeholders.

It is considered adequate for meeting the informational needs of the management for control of business operation

PROFIT AND LOSS STATEMENT

Profit and

BALANCE SHEET

CASH FLOW STATEMENT