Role of Accounting in Society

Principles of Accounting, Volume 1: Financial Accounting

Accounting

is the process of organizing, analyzing, and communicating financial information that is used for decision-making

financial accounting

which measures the financial performance of an organization using standard conventions to prepare and distribute financial reports

Financial accounting is used to generate information for stakeholders ? of an organization, such as owners, stockholders, lenders, and governmental entities such as the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS).

outside

Financial accounting is also a foundation for understanding ?, which uses both financial and nonfinancial information as a basis for making decisions within an organization, intending to equip decision makers to set and evaluate business goals by determining what information they need to make a particular decision and how to analyze and communicate this information.

managerial accounting