COMMERCE 2AB3- Final Exam Guide - Comprehensive Notes for the exam ( 49 pages long!)
28 Mar 2018
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The basic objective of accounting is to provide stakeholders with useful information about a business enterprise in order to help them make rational economic decisions. Figure 1 (they cannot access the accounting books. Want to decide whether to hold, sell, or buy more shares. Want to know if a company is a good investment. Creditors: (e. g. , suppliers, banks, etc. ) to successfully run the company & perform their basic functions. Want to know if they should extend credit to the firm, how much , and for how long. (budgeting) Want to know if taxable income is measured properly. Others (e. g. , financial analysts, labor unions, etc. ) the plan & Financial statements: balance sheet measures the financial health of the company, income statement measures the financial success of the company, cash flow statement measures the liquidity of the company. In order to prepare the financial statements, companies must follow a set of rules, standards and concepts referred to as:
