Deliverable Length: 1,500–1,750 words (not
including title page and references)
View objectives for this
assignment
You have recently hired a new
assistant, Susan Thompson, who previously worked in a financial accounting
office preparing journal entries, which provide you with a recording of the
day-to-day activities of the company and financial statements (income
statement, statement of owners’ equity balance sheet, and cash flow statement).
Although your new assistant has experience with and fully understands financial
accounting, she has no experience with managerial accounting.
Part 1
In a memo to your new
assistant, Susan Thompson, complete the following:
·
Explain to her the
similarities and differences between financial and managerial accounting.
·
Provide examples of managerial
accounting reports that she could expect to see within EEC, and explain how
management might use the information to make decisions.
o
Keep in mind that although the
income statement, the statement of owners’ equity balance sheet, and the cash
flow statement are generated in financial accounting, they are used to develop
all of your managerial accounting reports.
o
Examples of a few of those
reports are the horizontal analyzes, vertical analyzes, and ratios.
Part 2
In a memo to the board of
directors, discuss the information found in each of the following financial
statements, and describe how accounting information is used by managers for
planning and control:
·
Balance sheet
·
Income statement
·
Statement of cash flows
·
Statement of stockholders’
equity
