Class Notes (1,100,000)
CA (650,000)
UTSC (30,000)
MGTA02H3 (100)
Lecture 9

MGTA02H3 Lecture Notes - Lecture 9: A Question Of Balance, Income Statement, Operating Expense


Department
Management
Course Code
MGTA02H3
Professor
Arif Toor
Lecture
9

This preview shows pages 1-2. to view the full 7 pages of the document.
2nd Midterm
LEC 01 - March 16, 2020
10 am to 11am
Coverage: Chapters 1-9
Format: 35-50 MCQs
Review: Accounting
Accounting: a system for collecting, analyzing, and communicating financial
information
Measures business condition & performance
Presents information so managers can make decisions
Review: Two Kinds of Accounting:
Managerial Accounting
Financial Accounting
Detailed
Aimed at internal users
High-level
Aimed at all users
Review: Financial Statements
Key reports all businesses must prepare:
Income Statement
1)
Balance Sheet
2)
All must use the same rules and methods:
Generally Accepted Accounting Principles
Review: Income Statement
Also called:
"Statement of Profit and Loss"
"Statement of Earnings"
Purpose is to show:
Lecture 9 (The Balance Sheet)
Sunday, March 8, 2020
2:13 PM

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Purpose is to show:
$$ revenue (selling products to customers)
$$ cost of goods sold (make the product)
$$ operating expense (run the business)
$$ in - $$ out = Profit
Like a movie…
Shows info over period of time
Has a beginning and an end
Eg. For the fiscal year ended March 31"
Financial Statements Pt 2: The Balance Sheet
The Balance Sheet
Another way to measure financial condition:
What possessions have I acquired?
What is the value of my property?
How much "stuff" have I got?
Balance Sheet: Shows value of an organization's accumulated possessions
Is like a snapshot
Shows information about the business at one, frozen, moment in time
Eg. "… on July 11, 2019"
Shows the possessions of business -> ASSETS
Balance Sheet shows their value
Balance Sheet - Assets
Assets
Possessions available to a business
Things that can be SOLD or GIVEN AWAY
In accounting, people are not assets
You're Reading a Preview

Unlock to view full version