Accounting · Study Guide
Key Points
Accountants prepare financial statements, manage internal controls, and supervise bookkeepers
Financial accounting focuses on external reporting to shareholders and regulators
Management accounting supports internal decision-making through budgets and cost analysis
Exam Focus
Questions assess understanding of the breadth of the accountant's role beyond basic record-keeping. Explain-style questions expect you to link responsibilities to business consequences.
Must-Know Terms
Cross-Theme Connections
The double entry model
Accountants design the double entry system they then supervise
Budgeting
Management accounting responsibility includes preparing budgets
Analysis and evaluation of financial information
Analysis of financial information is part of the accountant's reporting role