MGCR 211 Lecture Notes - Lecture 1: Retained Earnings, Sole Proprietorship, Joint Venture

• School: McGill University
• Department: Management Core
• Course: MGCR 211
• Professor: Walter Moschella

Document Summary

Accounting- an information system in which the underlying economic conditions of organizations and individuals are recorded, summarized, reported, and understood. Annual report- a report of the company"s activities during the entire year. Share- document that represents ownership in the corporation. Shareholder"s equity- initial investment in the business entity in the form of cash or property. A= l + eq (assets = liabilities + equity) Eg: a house is worth k, but there is a k mortgage remaining to be paid. Balance between benefits and cost of collecting and reporting information. Purchase or sale of property, plant and equipment. Investment or sale of investments in the shares of other companies. Corporate profile, message to shareholders, management"s discussion and analysis, board of directors and management. Outlines steps taken to ensure safekeeping of assets and the practice of ethical and responsible management. Administration, cost of goods, amortization & income tax expenses. Assets (future value, controlled by company) eg: cash, inventory.