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Financial Accounting and Reporting For Servicers andMerchandisersInternational Edition2021Sources

1. The document discusses the types of business activities which include financing, investing, and operating activities. 2. It describes the four processes of management as planning, organizing, directing, and controlling and lists some common management roles like the production, marketing, finance, sales, and personnel managers. 3. The document defines accounting as the process of recording, classifying, and summarizing financial transactions and events to prepare financial reports for stakeholders like owners, investors, employees, lenders and regulatory bodies.

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188 views1 page

Financial Accounting and Reporting For Servicers andMerchandisersInternational Edition2021Sources

1. The document discusses the types of business activities which include financing, investing, and operating activities. 2. It describes the four processes of management as planning, organizing, directing, and controlling and lists some common management roles like the production, marketing, finance, sales, and personnel managers. 3. The document defines accounting as the process of recording, classifying, and summarizing financial transactions and events to prepare financial reports for stakeholders like owners, investors, employees, lenders and regulatory bodies.

Uploaded by

22-0188c
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Financial Accounting and Reporting for Servicers andMerchandisersInternational

Edition2021Sources:21st Century Accounting Process 27th edition – Financial Accounting and Reporting
for Servicers andMerchandisers by Zenaida Vera Cruz Manuel;Fundamentals of Accountancy, Business
and Management 1 by Rabo,Tugas and SalendrezDigested by Patricia Janel Borja (Holy Angel University,
BSA Student) Page 5TYPES OF BUSINESS ACTIVITIES1. Financing Activities• Initial investment (cash and
otherresources) • Additional financing by banks andother financing institutions • Also includes
withdrawals and loansrepaid to lenders 2. Investing Activities• Acquisition of assets• Eventually these
properties aredisposed or retired on its maturitydate 3. Operating Activities• Earning of income by
selling goodsor services • Incurring expenses MANAGING THE BUSINESSManagement – defined as
getting thingsdone byusing resources and directingpeople as efficiently as possible to be ableto
accomplish the goals of the business.For a business to be successfulmanagement must me:Efficient –
inputs (materials and labourhours) are being used at the least time,effort and cost to produce the
requiredoutputs (products or services).Effective – if it’s able to attain its goalsproducing and selling
required number ofproducts or services given at a specific levelof quality.FOUR PROCESSESA. Planning –
determining the goalsand lining up activities to accomplishthese goals B. Organizing – creating
divisions,appointing managers, hiring anddefining the roles and duties of eachone (managers and staff)
C. Directing – overseeing the dailyoperation of carrying out theplanned activitiesD. Controlling –
guarding and guidingpeople to ensure tasks and activitiesare done according to plans andsome standard
of performance Production Manager – draws a plan anddirects the production activities
accordingly.Marketing Manager – draws a plan basedon a study of the market – place, product,price,
and people.Finance Manager – takes care of thefinancial resources – how to source and usethem.Sales
Manager – overseeing sellingoperations – products, sales force, andcustomers.Personnel Manager –
takes care ofemployees and workers – selecting, hiring,training and overseeing them.ACCOUNTING AS A
BUSINESS LANGUAGEAccounting – aservice activity whosefunction is to prepare financial reports
thatwillprovide relevant information about thebusiness. A process ofrecording,classifying, and
summarizing transactionsand events which arefinancial in natureandinterpretingthe results
thereof.Accounting is abridge between thecompany and the interested parties orstatement
users.Business Firms – accumulate financial datathrough various activitiesAccountants – process the
financial dataand prepare financial reportsStakeholders or Users – read the reportsand make
decisionsUSERS OF FINANCIAL INFORMATIONStakeholder – a person or entity that has a“stake” or
interest in the business. a. Direct usersOwner or Investor – the one whoputs in capital (money or
properties)in a business.Employee – assess the ability of thebusiness to grant the demands(higher
wages, benefits, goodworking conditions and security oftenure)b. Indirect usersStock exchange trade
associationRegulatory bodiesFinancial analystsc. External usersLender or creditor – asses thepaying
ability of the business

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