Question

Managerial Accounting has taken us through various different concepts. In this discussion write about one topic that you feel is very useful to you in your present work or your future career.

Your response should be in atleast 2 comprehensive paragraphs. Feel free to write more than 2 paragraphs.

In the first paragraph explain your topic.

In the second paragraph explain why this topic is useful.

Answer 1

i hope you will rate my ans positively

Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization's goals. It varies from financial accounting because the intended purpose of managerial accounting is to assist users internal to the company in making well-informed business decisions.

i will choose- Cash Flow Analysis

Managerial accountants perform cash flow analysis in order to determine the cash impact of business decisions. Most companies record their financial information on the accrual basis of accounting. Although accrual accounting provides a more accurate picture of a company's true financial position, it also makes it harder to see the true cash impact of a single financial transaction. A managerial accountant may implement working capital management strategies in order to optimize cash flow and ensure the company has enough liquid assets to cover short-term obligations.

When a managerial accountant performs cash flow analysis, he will consider the cash inflow or outflow generated as a result of a specific business decision. For example, if a department manager is considering purchasing a company vehicle, he may have the option to either buy the vehicle outright or get a loan. A managerial accountant may run different scenarios by the department manager depicting the cash outlay required to purchase outright upfront versus the cash outlay over time with a loan at various interest rates.

I will choose cash flow analysis because being in the field of certified accountant .I am interesting to know the liquidity of business. all business decision are dependent on the cash flow analysis. the stability of business depends on cash status of company.it also indicates how the company is earning the revenue.