MGTA02H3 Chapter Notes - Chapter 4: Deferral, Earnings Before Interest And Taxes, Quick Ratio
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MGTA02H3 Full Course Notes
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Document Summary
Accounting - a comprehensive system for collecting, analyzing, and communicating financial information. Accounting information system (ais) - an organized procedure for identifying, measuring, recording, and retaining financial information so that it can be used in accounting statements and management reports. Business managers - to set goals, develop plans, set budgets, and evaluate future prospects. Employees and unions - to get paid and plan for and receive benefits. Investors and creditors - estimate returns to stockholders. Taxing authorities - plan for tax inflows, to determine tax liabilities of individuals and businesses. Government regulatory agencies - to fulfill their duties; the provincial securities commissions. Controller - the individual who manages all the firm"s accounting activities. Financial accounting system - the process whereby interested groups are kept informed about the financial condition of a firm. Prepares and publishes income statements, and balance sheets at regular intervals. Focuses on the activities of the company as a whole.
