BSM 100 Study Guide - Final Guide: Earnings Before Interest And Taxes, Pension, Income Statement
6 Dec 2017
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Document Summary
Accounting is a system for recognizing, organizing, summarizing, analyzing, and reporting information about the financial transactions that affect an organization. Managers: marketing managers, for instance, need information about sales in various regions and for various product lines. Financial managers need up-to-date facts about debt, cash, inventory, and capital. Shareholders: as owners of the company, most shareholders have a keen interest in its financial performance, especially as indicated by the firm"s financial statements. Employees: strong financial performance would help employees make their case for nice pay raises and hefty bonuses. But if earnings drop especially multiple times layoffs may be in the offing, and many employees may decide to polish their r sum s. Creditors: bankers and other lenders want to assess a firm"s creditworthiness by examining its accounting statements before granting a loan. Suppliers: like bankers, companies that provide supplies want to know that the company can pay for the orders it places.
