A. Managers of the company B. Shareholders of the company C. Tax authority D. Financial analysis advisiors
1. The purpose of accounting information
• Qualities of good information a. Relevance b. Comprehensibility c. Reliability d. Completeness e. Objectivity f. Timeliness g. Comparability
1. The purpose of accounting information
• The structure of accounting function c. Treasurer
Raising funds by borrowing Investing surplus funds Cash flow control
• The accounting staff informs the purchasing department of all payments of invoices.
2. Coordination with marketing/sales departments • The receivables ledger section relies on the sales
• The users of accounting information a. Managers b. Shareholders c. Trade contacts d. The debtors e. Tax authority f. Employees g. Financial analysts and advisors h. Government i. The public
F1
Accounting and finance
functions within business
1. The purpose of accounting information
• What is accounting? Accounting is a way of recording, analyzing and
1. The purpose of accounting information
• The structure of accounting function b. Management accounting
Costing accounting Budgets and budgetary control Financial management of projects
staff to send copies of sales orders or confirmations of goods delivered to customers.
• The accounting staff pass on information about payments received.
3. Coordination with debt collection staff
• The accounting staff prepares monthly statements and lists of aged receivables.
4. Coordination within the fina of accounting information
• The structure of accounting function a. Financial controller
Routine accounting Providing accounting reports Cashiers’ duties and cash control
1. The purpose of accounting information • Example question
Which of the following users groups of financial and accounting information are likely to need, and have access to, this information most?
summarizing transactions of a business.
The accounting system is affected by the size, type and structure of business.
1. The purpose of accounting information
F1 The relationship between accounting and other business function
1. Coordination with purchasing departments
• The payable ledge section relies on the purchasing department to send copies of purchase orders and confirm the validity of invoices received from suppliers, inform the accounting staff of any goods received or returned.
• The financial accounting staff responsible for preparing financial accounts might rely on the management accounting staff for data about inventory records so as to place a value on closing inventory