bookkeeping - ✔ day to day keeping of transcations steps of decision making - ✔ identify issue gather information identify alternatives select option that most likely results in desired objective accounting - ✔ analysis of events record and report financial effects of business activities where does capital come from (3) - ✔ investors creditors(lenders) business itself (from earnings retained) 2 main types of accounting - ✔ financial and managerial managerial accounting - ✔ gather and analysis of information for internal use and decision making. financial accounting - ✔ gather, report, analysis of information for external usersinvestors and creditors. summary of a business what does managerial accounting review - ✔ product cost, breakeven analysis, budgeting, performance analysis, outsource production what does financial accounting review - ✔ credit analysis, financial health, estimate value of the company examples of external financial reports for financial accounting - ✔ annual report, financial statement, balance sheet, income statement, statement of cash flow balance sheet - ✔ reports assets and liabilities. basic. list as of a point in time. as of today, as of yesterday income statement - ✔ how much did you ,ake period of time - from nov to jan statement of cash flow - ✔ where did the cash come from and where did the cash go period of time - from nov to jan