MGT224H5 Chapter Notes - Chapter All: Cash Flow Statement, Cash Cash, Cash Flow
Document Summary
Accounting identii es, measures, and communicates i nancial informa- tion about economic entities to users of i nancial statements. Objective of financial reporting: to provide information to stakeholders so they can make relevant decisions in allocating resources, information should be free from management bias and all stakeholders should have equal access to all relevant information. Assets: represent economic benei t to the entity; entity controls the benei t; benei t results from past transaction or event. Liabilities: represent a present duty; the entity cannot avoid it; results from a past transaction or event. Equity: residual interest in assets after deducting liabilities, also de- scribed as net worth. Revenues: increases in economic resources from ordinary business activities. Expenses: decreases in economic resources from ordinary revenue- generating activities of the business. Gains/losses: increases/decreases in equity from peripheral or inci- dental transactions. Standards for private enterprises (aspe): international gaap is referred to as international financial.
