MGTA02H3 Lecture : Lecture 4
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MGTA02H3 Full Course Notes
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Document Summary
A system for collecting, analyzing and communicating financial information. Purpose- measure business performance (eg. $, sales, expenses, profits or losses, taxes) Translate this info so managers (and others) can make decisions. Mostly * managers - need to know how well a business is performing, and whether it is financially sound. Financial accounting- tells external users about financial condition of firm. Tends to look at business as a whole. Managerial accounting- tells internal users about performance and problems, for planning, decision making and control purposes. Tends to look at individual products, plants or divisions. All businesses must use same rules and methods. Balance sheet- shows resources owned and available to the business- assets . Income statement- shows sales, expenses, profits made using resources- value . This that can be sold of given away. Liabilities: money that is borrowed or owed (eg. buy a house, you get a mortgage) Things you own (assets) must be paid for.
