Administrative Accounting


DEFINITION of 'Administrative Accounting'

The financial reporting of factors that influence decision making, operational control and managerial planning. Administrative accounting focuses on management planning and control to accomplish the company's administrative goals.

BREAKING DOWN 'Administrative Accounting'

Administrative accounting involves a formal methodology for gathering, reporting and evaluating financial data that deals with management planning and control. The reports can help administrators and managers evaluate the day-to-day activities of the operation.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Administrative Budget

    An official, detailed financial plan for an upcoming period for ...
  3. Overhead Rate

    In managerial accounting, a cost added on to the direct costs ...
  4. Administrative Expenses

    The expenses that an organization incurs not directly tied to ...
  5. Financial Statements

    Records that outline the financial activities of a business, ...
  6. Accounting

    The systematic and comprehensive recording of financial transactions ...
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  1. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  2. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  3. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  4. Are dividends considered an expense?

    Cash or stock dividends distributed to shareholders are not considered an expense on a company's income statement. Stock ... Read Full Answer >>
  5. Do dividends go on the balance sheet?

    The only account recorded on the balance sheet, when dividends are declared and before they are paid out to a company's shareholders, ... Read Full Answer >>
  6. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>

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