SOCSCI 2AC3 Study Guide - Comprehensive Midterm Guide: Financial Statement, Accounts Receivable, Comprehensive Income

• School: McMaster University
• Department: Social Sciences
• Course: SOCSCI 2AC3
• Professor: Avolio

Document Summary

Accounting: is a system for producing information about an entity and communicating that information to people who want or need the information for making decisions. Gather data process and organize data communicate information. Evaluate whether to lend to a prospective borrower, and terms. Evaluate whether or not to expand a business. Evaluate how well managers have managed a business. Whether or not to buy a business and how much to pay. Decide whether or not to make a major purchase. Access whether to make a product or to purchase it from an outside supplier, i. e. , Accounting matters because it is information, that when it used it has economic consequences. The accounting environment affects how an entity accounts for economic activity. Information needs of stakeholders vary- no one accounting report can provide information every decision makers needs. Preparers can often tailor information to suit needs. Decide what, how and when to present information. Selling price of business dependent on numbers.