Chapter 1 Review Hampshire

Managerial vs Financial

- Managerial : internal, help managers plan/direct/make decisions, internal accounting report, must be relevant, segments, depends on needs, no CPA's - Financial: external, help external make investing/lending decisions, financial statement, information historic transaction with external parties, as whole, annually and quarterly, CPA's

Three Primary Responsibilities

- Planning: setting goals and objectives and how to achieve them - Directing: overseeing the company's day-to-day operations - Controlling: evaluating the results of a business operations and making adjustments as needed

Managerial Accounting

- partnering in management decision making - devising planning and performance management systems -providing expertise in financial reporting and control

Institute of Management Accountants (IMA)

- professional association for management accountants in the US - Mission: provide a forum for research, practice development, education, knowledge sharing, and advocacy of the highest ethical and best practices in management accounting and finance - issues the certified management accountant (CMA) certification

Role of Management Accountants

- use immense critical thinking, insight, and judgement - valued financial advisors - assist with making critical business decisions