ARBUS101 Lecture Notes - Lecture 8: Accounting, Asset, International Financial Reporting Standards

• School: University of Waterloo
• Department: Arts and Business
• Course: ARBUS101
• Professor: Zamal Ruffudeen

Document Summary

Module 8 understanding accounting and financial information chapter 16 : the role of accounting information. Textbook reading arbus101: accounting is the recording, classifying, summarizing, and interpreting of, accounting disciplines financial reports people outside the organization analyses to managers inside the organization to assist them in decision. International financial reporting standards (ifrs) the: auditing the job of reviewing and evaluating the records used to prepare a company"s financial statements. Better: acid-test ratio = cash + receivables + marketable securities/current, leverage (debt) ratios. Liabilities (want 1. 0 or better: debt to owner"s equity ratio = total liabilities/owner"s equity (want below 100%, profitability (performance) ratios, basic earnings per share = net income after taxes/number of. Common stock shares outstanding: return on sales = net income after tax/net sales, activity ratios. Inventory turnover = cost of goods sold/average inventory: return on equity = net income after tax/total owner"s equity.