Dan Paul Tirol

HRDM 3-B
Managerial Accounting

1. Managerial Accounting is the practice of using accounting information — from

revenues to production inputs and outputs affecting the supply chain — internally,
in support of organization-wide efficiency and for tracking the organization's
progress toward attaining its stated goals.

2. Financial accounting is a specific branch of accounting involving a process of

recording, summarizing, and reporting the myriad of transactions resulting from
business operations over a period of time.

3. The users of Financial Information are Customers, Employees, Governments,

Investment Analysts, Investors, Lenders and Creditors, Management Team,
rating Agencies and Unions.

4. Managerial Accounting focuses on an organization’s internal financial processes,

while financial accounting focuses on an organization’s external financial
processes.

5. The 5 basic financial reports are income Statement, Statement of Cash Flow,
Statement of Changes in owner’s Equity and Notes to Financial Statements.

6. The 3 Pillars of Managerial Accounting are Planning, Decision-making and

Controlling.

7. Ethical Behavior is the application of moral principles in a given situation. It

means to behave according to the moral standards set by the society which we
live in.

8. A) Certified Public Accountant (CPA) - The CPA is probably the most

recognizable of the accounting certifications out there. Certified public
accountants help individuals and organizations plan and work toward financial
goals.

B) Certified Management Accountant (CMA) - Unlike the CPA, this certification

focuses on areas of management within accounting and covers the topic of
finance as well. Offered through the Institute of Management Accountants (IMA),
a CMA concentrates on management skills, corporate finance and professional
ethics.

C) Chartered Financial Analyst (CFA) - A CFA certification is a finance-focused

accreditation. It’s highly relevant if you’re considering a career in finance or
financial planning. Responsibilities can include portfolio management,
investment, economics and professional ethics.