Management and Organizational Studies 1023A/B Lecture Notes - Cash Flow Statement, Accounts Payable, Legal Personality

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Global economic systems depend on reliable and accurate financial reporting. Accounting has changed on how business programs and are structured due to recent crises more important for all people in business to understand accounting. Steps: measures business activities eg. customers buying products, paying bills, processes data into reports (financial statements, communicates results to decision makers. Accounting identifies and records the economic events of an organization and communicates to interested users. Two broad categories of users of financial information: Managers plan, organize and run a business. Decisions such as prices, strategic, marketing, employee compensation, budgeting, resource allocation: external users. Others: tax authorities eg. revenue canada, regulatory agencies eg. Partnership owned by more than one person each person"s different strengths contribute to the overall business. Financial issues tied to parties if there is a small amount. Limited partnership liability is limited to what was invested in the business. Corporation separate legal entity having ownership held by shareholders.