BUS 251 Lecture Notes - Lecture 1: Management Accounting, Financial Statement, Current Liability

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Financial vs managerial accounting: financial accounting: process of capturing, analyzing and reporting transaction information to financial statement users, financial statement users a. Internal users: management: external users: shareholders, board of directors, potential investors, creditors, regulators, taxing authorities, business activities, financing activities: comes from investors and creditors a. i. Outflow: repaying loans, paying dividends on shares b. Investing activities: buying and selling property, plant, and equipment (ppe). Also buying and selling shares of other companies b. i. Inflow: sale proceeds from ppe, sale proceeds from shares in other companies b. ii. Outflow: purchase of ppe or shares in other companies: operating activities: c. i. Outflow: payment of business expenses: financial reporting, statement of income: measures performance of company a. i. Revenue expenses = profit (net income) a. ii. Includes an earnings/share disclosure: statement of changes in equity: changes in shareholders during accounting cycle b. i. 2 major components: share capital and retained earnings. c.