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Running head: OVERVIEW OF ACCOUNTING
Overview of Accounting
Brenda Anderson-Comier
University of Phoenix
Introduction to Finance and Accounting
MBA/503
Jacob Matthews
Jan 8, 2007
Overview of Accounting
Brenda Comier, President of Comier & Comier, LLP, have been contracted to give an
informational presentation to a group of small business owners (SBO) with no accounting
or financial knowledge. The workshop is designed to help the small business owner
understand and fulfill their accounting and finance responsibilities. This presentation will
also give them an understanding that accounting involves the accumulation of historical
information. Finance, on the other hand, involves analyzing the historical information and
using it to plan and make future decisions. During the presentation, Brenda will identify
the audiences, purposes, and natures of financial statements and managerial reports.
Brenda will also explain the use of financial accounting information in making informed
and ethical business decisions.
Financial Statements and Managerial Reports
Financial Statements are summaries of monetary data about an enterprise. Brenda
identified the audience of financial statements and managerial reports to be:
prospective investors
shareholders
Banks
government regulators
management,
labor
The purpose of financial statements:
To inform the audience of how the company performed.
To show how much assets, liabilities, and equity it currently has.
The nature of financial statements is the numerical compilation of categorical objective
aspects of the organization.
Managerial reports are different from the financial statements. Managerial reports:
Objective analysis of finite categorical information used to evaluate adopted positions and
to adjust those positions to better meet goals.
The primary use
o Invalidate or validate assumptions
o Reduce financial risk.
Management Reports can consist of:
o Comparative Balance Sheet
