Different Types of Management Accounting Information

Finance and Funding in Travel
and Tourism
TASK 2

2.1 Different types of management accounting
information
• Income statement/Profitability statement
• Balance sheet/Statement of financial position
• Statement of cash flow
• Budgeting
• Variance analysis
• Trend analysis

Income statement
• Summarize results of trading functions
• Income and expenditures
• Profitability: Gross profit, EBIT and net profit
• Accrual accounting concept provides current year results only
• Accounting equation:
• Net Profit = Total turnover – total expenditures

Balance sheet
• Summarized details about shareholder’s equity, assets and
liabilities
• Prepared at the end of the year
• Solvency, liquidity and efficiency
• Accounting equation:
Assets = Liabilities + Owner’s equity