Functions Of Management

An Overview of Accounting

The dictionary of accounting states that accounting is the work of recording money

paid, received, borrowed, or owed. Finance is closely related to economics and

accounting and the relationships between the two fields need to be better understood by

business owners as well as staff of small companies as well as large organizations.

Accounting is sometimes said to be the language of finance because it provides financial

data through income statements, balance sheets, and the statement of cash flows (Block

& Hunt, 2005). The financial managers or financial management team have an

obligation to allocate funds to current and fixed assets, to obtain the best mix of financing

alternatives, and to develop an appropriate dividend policy within the context of the

firm's objectives. In this paper, the audiences, purposes, and natures of financial

statements and managerial reports will be identified. Additionally, the use of financial

accounting information as it relates to making informed and ethical business decisions

will be explained.

Financial Statements

Financial statements are necessary sources of information about companies for a wide

variety of users. Those who