Professional Documents
Culture Documents
13 & 14
Explain the advantages and disadvantages of a direct channel of
distribution
Differentiate between types of market coverage
Explain how the distribution process can be accelerated
Explain how retailers serve customers
Explain how wholesalers can serve manufactures and retailers
Explain how promotion and advertising can benefit firms
Describe the steps involved in personal selling
Describe the sales promotions methods that are used
Describe how firms can use public relations to promote products
Explain how firms select the optimal mix of promotions to use
Accounting and Financial
Analysis
(Chapter 15)
Chapters Overview
3
Learning Objectives
Bookkeeping Accounting
Start of accounting Analyze
Record/journalize Recommend
The Use of Accounting
Reporting
To shareholders, creditors
Firms use accounting firms to ensure accuracy
This is called financial accounting
Should comply GAAP (General Accepted Accounting Principles)
FASB (Financial Accounting Standards Boards), SEC (Securities
and Exchange Commission), and IRS (Internal Revenue Service)
Decision Support
Budgeting, products decision, production level
This is called managerial accounting
Control
Measure performance of individual, divisions, products
Internal auditors may be used to ensure efficient operations
Responsible
Financial Reporting
Accounting is flexible
Can use different methods to give different outcomes
By inflating certain financial aspects
Ex: calculating depreciation (straight-line method vs
double declining method); direct vs indirect income
statement report.
So hire external auditors
Remember Arthur Andersen & Enron?
Board should ensure proper accounting
But they have personal interests!
The Accounting System
Users of Accounting Information
Many types of organizations use accounting information
to make business decisions
The reports needed vary according to the information
each user requires
An accountant must prepare the appropriate forms
Users Type of Report
Government taxing authorities (e.g. The Tax returns
Internal Revenue Service)
People interested in the organizations Financial statements found in annual reports
income and financial position (e.g. Owners, (e.g. Income statement, balance sheet,
creditors, financial analysts, suppliers) statement of cash flows)
Managers of the firm Financial statements and various internally
distributed financial reports
Steps in the Accounting
Cycle
Interpreting Financial Statements