Business Administration 2257- Final Exam Guide - Comprehensive Notes for the exam ( 63 pages long!)

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: J S

Document Summary

B u s i n e s s a dm i n i s t ra t i o n 2 2 5 7. Chapter 1 the purpose and use of financial statements. Generally accepted accounting principles for business organizations. Accounting equation: assets = liabilities + shareholders equity. Accounting: the process of identifying, recording and communicating the economic events of a business to interested users of the information. Those who plan, organize and run companies. Examples of internal users: finance directors, marketing managers, human resource personnel, production supervisors, company officers. Require detailed information on a timely basis (must be available when needed) Examples of the reports used by internal users: financial comparisons of operating alternatives, projections of profit from new sales campaigns, analyses of sales costs, forecasts of cash needs. Used by investors (shareholders/creditors) to make decisions on whether to buy, hold or sell. Lenders (bankers) use information to decide whether to grant credit.