MGM101H5 Lecture Notes - Lecture 13: Cash Flow Statement, Financial Statement, Financial Accounting
MGM101H5 verified notes
13/13View all
Document Summary
Accounting is recording , summarizing , interpreting of financial events and. Transactions in an organization to provide management and other interested parties financial information needed to make good financial decisions. Examples : financial transactions : buying and selling of goods and services , acquiring insurance , paying employees etc. Accounting system is the method to record and summarize accounting data into reports. Inputs accounting documents : example : sales documents , purchase documents ,payrolls , shipping documents , travel records etc. Processing : record entries in journal, posting those into ledgers, summarize accounts. Outputs : financial statements, balance sheet. Income statement: cash flow statement, other reports like annual reports. Main purpose of accounting statements : help managers make better decisions. Users of accounting informations: government tact agencies , requires tax returns of company, government regulatory agencies , requires reports, people interested in organizations financial information :
