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Lecture Introduction to Accounting: An integrated approach: Chapter 2 - Penne Ainsworth, Dan Deines
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Lecture Introduction to Accounting: An integrated approach: Chapter 2 - Penne Ainsworth, Dan Deines
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Chapter 2 - Business processes and accounting information. In this chapter you will learn: Explain the management cycle and the four basic business processes, describe the balanced scorecard approach and its four perspectives, discuss what internal controls are and why they are important, perform a two-column bank reconciliation. | Chapter 2 Business Processes and Accounting Information Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 2- What are the 3 Phases of the Management Cycle? Planning phase Setting goals and objectives for business activities Performing phase Completing the planned business activities and recording the results of those activities Evaluating phase Providing information to interested users to assess the success of the business activities 2- What are the 4 Business Processes? Business organization and strategy process Determines the plan of action for the company Operating processes Profit-making activities of the company Capital resources processes Financing and investing activities of the company Performance measurement and management process Balanced scorecard 2- What is the Balanced Scorecard? Holistic approach to planning and measuring performance 4 perspectives Financial Internal Customer Learning and growth 2- What Measures are Used in the Financial Perspective? Return on investment ratio Relationship between net income and assets Quick ratio Relationship of liquid assets to current liabilities Return on owners’ equity Relationship between net income and owners’ equity Gross margin Relationship of gross margin to sales Current ratio (Chapter 1) Debt to equity ratio (Chapter 1) Return on sales ratio (Chapter 1) 2- What Measures are Used in the Internal Perspective? Value-added versus nonvalue-added time Customer response time—from when the customer places on order until the order is received Activity ratios Quality Prevention Appraisal Internal failure External failure 2- What are the Voluntary Types of Quality Costs? Prevention Reducing the opportunity for error to occur Employee training, product and process design Appraisal Finding errors as early in the process as possible Continuous inspection, testing 2- What are the Involuntary Types of Quality Costs? Internal failure Correcting errors . | Chapter 2 Business Processes and Accounting Information Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 2- What are the 3 Phases of the Management Cycle? Planning phase Setting goals and objectives for business activities Performing phase Completing the planned business activities and recording the results of those activities Evaluating phase Providing information to interested users to assess the success of the business activities 2- What are the 4 Business Processes? Business organization and strategy process Determines the plan of action for the company Operating processes Profit-making activities of the company Capital resources processes Financing and investing activities of the company Performance measurement and management process Balanced scorecard 2- What is the Balanced Scorecard? Holistic approach to planning and measuring performance 4 perspectives Financial Internal Customer Learning and growth 2- What Measures .
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Lecture Introduction to Accounting: An integrated approach: Chapter 2 - Penne Ainsworth, Dan Deines
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Lecture Introduction to Accounting: An integrated approach: Chapter 2 - Penne Ainsworth, Dan Deines
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