W004/2pages

*Review the below links for this weeks assignment in Accounting class - 2pages* Complete the following reading assignments, then watch the videos: · https://learn.canvas.net/courses/37/pages/study-what-are-managers-and-what-information-do-managers-use-to-make-business-decisions <https://learn.canvas.net/courses/37/pages/study-what-are-managers-and-what-information-do-managers-use-to-make-business-decisions%20> · Users of Accounting Information <https://www.accountingcapital.com/basic-accounting/who-are-the-users-of-accounting-information/> (*https://www.accountingcapital.com/basic-accounting/who-are-the-users-of-accounting-information/ <https://www.accountingcapital.com/basic-accounting/who-are-the-users-of-accounting-information/>)* · Chapter 1- "How to Speak Accounting" in your textbook *Accounting for Managers* Watch the following vidoe(s): · *Video 1: **“Why Accounting is Important” * · *https://www.youtube.com/watch?v=sRuWd5TL5_I&t=33s <https://www.youtube.com/watch?v=sRuWd5TL5_I&t=33s>* Description: This video provides three reasons why understanding accounting is important for non-accountants. · *Video 2: What is Accounting?* · https://www.youtube.com/watch?v=N2YyiVAO5Do&t=1s Accounting information is used by both internal and external users. External users are those outside the company such as investors, creditors, employees, governmental bodies, etc. who use financial information to make decision such as whether to buy a company’s stock or extend credit to the company. These decisions are based on information in the financial statements (balance sheet, income statement, cash flow statement and retained earnings statement) along with other information. The financial statements must be prepared according to generally accepted accounting principles (GAAP) and unified by the accounting equation of: ASSETS = LIABILITIES + OWNERS’ EQUITY so that all companies use the same guidelines in preparing the financial statements. This allows for the comparison of financial information of one company to that of another. This is the purpose of financial accounting. Internal users of accounting information include management and owners – Accounting information is of great assistance to management for planning, controlling and decision making. Management accounting information may be used to measure revenues, costs and assets; for control; and, to aid in choosing among alternative courses of action. This is the purpose of managerial accounting. Management accounting does not have a single unifying equation such as the one that guides financial accounting. Thus, there is no standard format for reports generated in managerial accounting. *Assignment :* Identify at least 5 internal and 5 external users of accounting information and indicate how each user group would use the information to make a decision. https://www.youtube.com/watch?v=sRuWd5TL5_I&t=33s https://www.youtube.com/watch?v=N2YyiVAO5Do&t=1s