BUSI 1101 Lecture Notes - Lecture 5: Financial Statement, Limited Liability, Income Tax
18 Mar 2018
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Document Summary
Chapter 1: the purpose and use of financial statements. Learning objectives: identify the uses and users of accounting, describe the primary forms of business organization, explain the three main types of business activity, describe the purpose and content of each of the financial statements. Accounting identifies and records the economic events of an organization and communicates to interested users. There are two broad categories of users: internal users, external users. Internal users: manage the company, non-profit, government organization, company officers, managers and directors in finance, marketing, human resources, production. External users: do not work for the company, investors, lenders, and other creditors, customers, employees, labour unions, taxing authorities and regulations. Identify the internal and external users of financial information for a local hospital. For accounting information to have value, preparers must have high ethical standards: actions are legal and responsible, consider organization s interests. Accountants, other professionals, and most companies have rules or codes of conduct to guide ethical behaviour.
