MGTA02H3 Lecture Notes - Lecture 3: Tax Avoidance, Strategic Management, Financial Statement
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MGTA02H3 Full Course Notes
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Collecting, analyzing & communicating financial info measure business performance to prepare public reports; keep records, analyze effects of transactions *distorted results. Bookkeeping: a phase of accounting record accounting transactions. Private accountant: salaried employee to deal with a company"s day-to-day accounting needs. Accounting equation: assets= liabilities + owner"s equity: asset: economic value owned by firm/ individual e. g. land, building, liability: debt owed by firm/ individuals to others. Owner"s equity: (+) difference btw firm"s assets & liabilities investment cash (-) = insufficient to pay off debts *assets- liabilities. 1)amount that owner originally invested; 2) profit earned & reinvestment. Double-entry accounting: record dual effects of transaction (assets & liabilities & owner"s) * inventory with cash cash inventory; supplies on credit supplies account payable; Balance sheets: detailed information about the accounting equation factor (financial position, assets, liabilities and owner"s equity) state of asset structure at any given time.
