ACCT 105 APUS How Financial Accounting Differs From Managerial Accounting Discussion In need of a 125 response/discussion to EACH of the following forum po

ACCT 105 APUS How Financial Accounting Differs From Managerial Accounting Discussion In need of a 125 response/discussion to EACH of the following forum posts. There are (3) different Forum posts. Agreement/disagreement/and/or continuing the discussion.The three interactive posts should each be substantial, relevant, and engaging. Replies to classmates should include direct questions. In-text citations and references may be in APA format. Original forums discussion/topic post is as follows: (Use/Cite references to support your ideas)

Chapters 1 and 2 of the textbook have been used this week.

FORUM POST 1: (1st question) Discuss the differences between financial and managerial accounting. What types of financial statements are used by business organizations?

Hi class,

For week one I will answer the question about the difference between financial and managerial accounting. Financial reports are required by law for all publicly owned businesses. The accounts are put together by accountants and it shows the condition of the companies wealth. These reports can be listed as a balance sheet or income statements. Balance sheets and income statements are most commonly used by business organizations. Companies like to keep track of their net worth, assets, and liabilities on a balance sheet to see how funds were spent. This will tell them if they made a profit or had more loses in certain areas while they were conducting business. An income statement is more of a screenshot of the companies revenue and expenses during certain time periods. Depending on how the economy is at the current time this report can change. Managerial accounting includes a recommendation of different ways and ideas to improve the companies business. Mangers will have to use both of these methods while making decisions for the success rate of the company to be high. Often times you will hear accounting referred to as the language of business. Due to the fact that you can see the companies financial activity with their report it is a way of communicating on how that company handles business. Did they make more money this year that they spent? This will allow possible future investors and charity donors to get an insight on how their money could be used by this particular company. Once a business can determine that they are financially solid and strong they will continue to allocate money into marketing their brand and increasing production. The main store that sells extremely well will allow room for another store to be built across town so that they can continue to make an even bigger profit for the fiscal year.

FORUM POST 2: (2nd question) Compare and contrast the development and use of GAAP and IFRS. Do you think the implementation of international accounting standards is feasible? Please explain.

Hello Class,

This week I decided to tackle question number two. It seems like the GAAP a giant melding pot of a lot of different organizations that helped mold the accounting standards that the US goes by today. These standards have been improved over the years to allow growth while companies expand and required more ethics in a growing world. The International Financial Reporting Standards are a not for profit organization that developed a single set of high quality and understandable global standards. The GAAP has a lot to do with the private sector having a lot of influence in setting the accounting standards. I believe the US would have a difficult time accepting and using the IFRS. The US has become accustomed to it’s rule based practices. In order to have IFRS in the US it would require all practicing international accountants to learn a whole new system of accounting. While IFRS is a principle based concept that would allow for international companies to make a single financial statement, it would be hard for the US to learn and go by principles instead of rules made by fellow accountants over the years. I do not believe that the implementation of IFRS would be feasible. Once they would be implemented it would be very costly to train accountants in these new standards. The question is can the US afford the time consuming and costly training that would be required. While I believe the IFRS intentions are pure, the US would have to make fundmental changes to it’s practices.

FORUM POST 3: (3rd question) Look at the origins and purposes of accounting and discuss how our society’s development has been affected by its use. Could our society function as it currently does without accounting? Please explain.

Class,

Look at the origins and purposes of accounting and discuss how our society’s development has been affected by its use. Could our society function as it currently does without accounting?

Chapter in 1 in our reading, the origins of accounting began about 4000 BCE by means of record keeping while utilizing processes to ensure accountability, honesty and integrity.With the progression of accounting, the double entry system emerged by a Franciscan monk, Lucia Pacioli where the basis of this system continues to be effective in today’s accounting systems.The purpose of accounting is measuring the performance of your business organization.The process provides financial data in forms of financial statements which keeps the decision makers aware and ensure that right decision is made without financial uncertainty.Account information helps create budgets for businesses therefor having detailed information establishes future budgeting expenditures. Additionally, it is significant in the business making process.For example, an expansion to a business. Having the account information identifies cost of various resources and how current operations will be affected when the business grows or expand.For a small business, this can result in an investment opportunity.Investors, bankers and lenders review the financial accounting information for profitability.

I don’t believe we can function without accounting; the resource is too valuable to the economy and it is law.It is the language of business so lack of financial responsibility and records would be detrimental.If you don’t monitor your cashflow you lose money fast.If you receive an inquiry from a federal agency, you’ll need proof for response.If you want to expand your business, what financial records and history do you have to show profitability?