MOS 1023B Lecture Notes - International Financial Reporting Standards, Financial Statement, Cash Flow Statement

• School: Bishop's University
• Department: business management
• Course: MOS 1023B
• Professor: Jeffery Jutai

Document Summary

Why study accounting: language of business, global economic systems depend on reliable and accurate financial reporting, measures business activities, process data into reports (financial statements, communicates results to decision makers. Identifies and records the economic events of an organization and communicates to interested users: Internal users resource allocation: external users, managers plan, organize, and run a business, pricing, strategies, marketing, employee compensation, capital budgeting, investors, creditors primary users, others include: tax authorities, regulatory agencies, customers, labor unions, economic planners, communities. Ethical behaviour: accountants must have high ethical standards, actions are legal and responsible, consider organization"s interests, there are normally rules or codes of conduct to guide ethical behaviour, companies tend to have rules of conduct. Forms of business organizations: proprietorship, owned by one person, simple to set up, owner has control over business, unlimited liability, owned by one than one person, formalized in a written agreement, each partner has unlimited liability, partnership.