MBA Accounting

Accounting Concepts/Convention/Principles

Commonly Used Accounting Phrases

Who Are The Users Of Financial Statements?

What Are The Limitations Of Financial Statements?

Why Do Public/Investors Read The Financial Statements?

The Main Qualitative Characteristic Of Financial Statements

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For those unfamiliar, we might be surprised that some users like the company’s suppliers too can be a user of the financial statement. Append below is a listing of the user group who will consistently use the financial statements for their own needs: (more…)

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Managers who follow the figures in the financial statements very closely might need to be a bit cautious as whatever figures revealed in the financial statement might not really be gospel truth.

Like all others, there indeed are some limitations of financial statement: (more…)

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Like the public investors, as managers who are also the users of the financial statements which are in the annual reports, we should also understand why the public or investors read the company’s financial statement? (more…)

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As managers, whether with or without financial accounting knowledge, it is indeed essential to at least understand what constitute some good main qualitative characteristics of financial statements. Append below are a table of such characteristics: (more…)

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The basic step to fortify your understand of accounting is to be familiarize with some of the commonly phrase accounting terms which are appended below ( linked to my other blog). We definitely don’t need to be an Accountant as reiterated, however the end objective of the mba-managers particular those without any financial accounting knowledge is to have a good grip of the financial statements so the need to apprehend the following commonly used accounting terms/phrases:

Managers who are accountable for their business units need to at least understand the difference between Cash Basis Accounting Method And Accrual Method

otherwise it will cause disastrous impact to announcing the financial results re: costs not properly aligned/matched to the revenue generated. (more…)

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 Append below are the following major Accounting concepts which the author has provided for in his other accounting blog which hopefully explains the concept in a simple manner for readers to understand:-

Key Accounting Concepts/Convention/Principles

In a business in order to account to shareholders/investors/authorities, the financial statements need to follow a certain fixed period of reporting say quarterly, half yearly and yearly. Therefore this Accounting Period Concept is merely the fixing of the period for reporting. In normal cases, it is always a one year period. (more…)