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    Accounting

    Accounting is the business discipline that studies how a company's financial information can be manipulated and presented, in a meaningful way, to enhance the decision-usefulness of that financial information. We typically think of accounting as incorporating three related disciplines: financial accounting, management accounting, and auditing.

    Financial accounting

    Financial accounting looks to present financial information that is useful to external users, such as investors and creditors, who use this information to make resource allocation decisions between businesses. This information is subject to IFRS or US GAAP, is prepared using double-entry bookkeeping, and is presented in four required financial statements: the balance sheet, the income statement, the cash flow statement, and the statement of owner's equity.

    Management accounting

    Management accounting deals with information that is used by internal users, such as a business's managers, who use this information to make resource allocation decisions within the firm. These include short-run production decisions and long-run capital budgeting decisions. (At BrainMass.com, we look at capital budgeting decisions under Corporate Finance.)

    Management accounting information comes in a variety of financial reports, including budgets. This information is not subject to accounting standards, and how this information is prepared changes based on the costs of collecting financial information and the benefits that this information has for management decision-making. As a result, a variety of different management accounting techniques are used.

    Auditing

    Auditing typically refers to financial auditing of public companies. Financial audits are conducted by independant external auditors, who provide an opinion about a company's financial reports. These auditors must adhere to Generally Accepted Auditing Standards (GAAS) in the United States, and their opinions give investors reasonable assurance that financial reports are true, fair, and adhere to applicable accounting standards. The auditor must also include an opinion about the effectiveness of a company's internal controls.

    In addition to the financial audit, there is a range of many different types of audit and assurance services. Many financial auditing firms also provide a range of these services, giving feedback about the effectiveness of a company's processes and procedures. These services may also be provided by in-house internal auditors that work within a single company.

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    Categories within Accounting

    Financial Accounting & Bookkeeping

    Solutions: 10,910

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    Partnerships and Corporations: major lawsuit probable damages

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    Statement of Changes in Financial Position Amazon 2017

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    Nordic Company issued bonds with the following provisions

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    Capital budgeting using the NPV method

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    Net present value decisions

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    Return on average investment, Payback, PV & NPV

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    E25.5

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    Variance Analysis for AGRICHEM INDUSTRIES

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    E24.6 Marlo Enterprises

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    Material Price Variance, Material Quantity Variance & Overhead Volume Variance

    Gumchara Corporation reported the following information with respect to the materials required to manufacture amalgam florostats during the current month: Standard price per gram of materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4 Standard quantity of materials per amalgam florostat . . . .

    Computing Cash Collections and Ending Balances

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    Characteristics for Operating Successful Responsibility

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    Exercise 20.1: Accounting Meaning

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    Activity Based Costing Management Accountant

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    Activity based costing accounting systems

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    Computing Inventory and Overhead Balances and Operating Income

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