SOCSCI 2AC3 Lecture Notes - Lecture 2: Canada Revenue Agency, Accounts Payable, Current Liability
19 Sep 2016
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Document Summary
Information is relevant if its influences stakeholder decisions: faithful representation. Financial statements must capture the economic activity of an entity. Free from error- no significant errors or omissions: comparability. Provides users with information that is readily comparable: verifiability (can you verify the info on a financial statement) Can you understand it? it needs to make sense!!) Accounting information is prepared for stakeholders with reasonable understanding of business": timeliness (better knowing on time/right away than later!) (ex. company loosing money) Public companies (publically traded means that there are many stakeholders) Private companies (3 or 4 people in partnership with each other) Government entities- federal, provincial, municipal (number one stakeholder for them are tax payers) Creditors- bank and people who lend money (they want to see financial statement to see if they are going to get their money back) Canada revenue agency (want to see financial statement to see how much they own them)
