Overview of the Accounting Environment Managerial Accounting

Fields in Accounting  Financial Accounting – financial statement reporting to entities outside the business organization

Financial Accounting  Information primarily intended for investors and creditors  Governing body is the Financial Accounting Standards Board (FASB)  Highly regulated

Financial Accounting  Financial reports are:  Balance Sheet  Income Statement  Statement of Changes in Equity  Statement of Cash Flows  Verified through documentation and audit by CPA

Fields in Accounting  Cost/Managerial Accounting – preparing information suitable for managers to plan control and run the organization

Cost / Managerial Accounting  Information prepared for internal users  Primarily intended for decision making by managers  No governing body or regulators  Emphasis on relevance rather than verification

Fields in Accounting  Governmental Accounting – accounting for state or local governments using “fund” accounting concepts  Separates activities of the organization into distinct reporting units

Fields in Accounting  Tax Accounting – strategic planning to reduce tax liability  Record keeping and filing for tax preparation

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Professional Organizations IMAInstitute of Management Accountants MSCPAMissouri Society of Certified Public Accountants AAAAmerican Accounting Association

Certifications CPACertified Public Accountant CMACertified Management Accountant CIACertified Internal Auditor CFACertified Forensic Accountant