BUSS1020 Study Guide - Midterm Guide: Transact, Historical Cost, Accountant

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1020
• Professor: All

Document Summary

Differences between financial accounting and management accounting. Adoption of international regulations incl. accounting standards. Resources are limited > each decision has consequences for future decisions. Decide whether a new car is affordable. Evaluate progress towards those goals, take corrective action when needed. Outside investors who hold an ownership interest often provide money to get the business going. In make an investment decision, you would predict the income earn on investment, then use financial statements to analyse how the investment is performing. Creditors (a person/company to whom money is owed) Before lending money to x for their business, a bank evaluates the ability for x to make the loan repayments. Requires a report on predicted income of x, supported by financial statements. If jb hi-fi wanted to borrow money from its creditors, it would have to show forecasts consistent with information contained in latest financial statements. Australian securities and investments commission (asic) is responsible for administering and enforcing the corporations law.