[RSM219H1] - Final Exam Guide - Comprehensive Notes fot the exam (26 pages long!)
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RSM219H1 Full Course Notes
Verified Note
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Document Summary
It is the process by which information on the transactions of an organizations is captured, analyzed and used to report to decision makers outside of the organizations management team. People inside the organizations also use this information to make decisions for the company, they sometimes require this information at a different amount of detail. Management is an internal user of the financial statement. Shareholders, the board of directors and potential investors. When there are numerous shareholders, they elect a board of directors to represent their interests. Board of directors: has the responsibility to oversee the management team that has been hired to operate the company. Two major groups of creditors: financial institutions they generate interest on their loans, supplies, employees and various levels of government these people receive payment after performing their service. Suppliers after they give the goods to the company than wait for it to pay them back.
