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 ...