MGAB03H3 Lecture Notes - Accounts Payable, Capital Account, Deferral
7 May 2013
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Document Summary
Ethics are standards used to judge someone"s actions as right or wrong. Analyzing an ethical dilemma: recognize the situation, identify and analyze the elements of the situation, identify the alternatives and their effects. Internal users: finance, marketing, human resources, production. External users: investors, creditors, labour unions, customers. Information systems do 3 things: identify, record, and communicate economic activities. Gaaps are the common set of standards implemented by the canadian institute of. Chartered accountants which guide the methods of accounting. Cost principle: assets should be recorded at their original historic cost. Assumptions: create a foundation for the accounting process. Going concern assumption: assumes the company will continue to operate in the near future. Monetary unit assumption: only transactions that can be expressed through money is included in records. Economic entity assumption: the economic activities of an entity must be kept separate from the owner. Proprietorship: business owned by a single person. Partnership: business owned by two or more persons.
