Managerial Accounting

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1700 – 1900 words

 

As EEC’s corporate business financial analyst, you will be required to provide the EEC board of directors and executive management team with essential financial information on the management of the EEC enterprise. In a memo to the board of directors, discuss the information found in each of the following financial statements and how that information is used for the planning, controlling, and decision making of the company. Also, discuss what some of the reports and ratios are that the following financial statements can help you develop. (As you analyze the statements listed below, keep in mind that these statements are the foundation of financial accounting and are developed from transactions that happened during the time period of the statement. This information is used by external users as well as internal users. Managerial accounting focuses on the use from the internal user perspective. The information from these statements is used to analyze and establish budgets, forecast, variance reports, and ratios, among other things, with the key being that they are only used internally).

  • Balance sheet
  • Income statement
  • Statement of cash flows
  • Statement of stockholders’ equity

 

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