Management and Organizational Studies 1023A/B Study Guide - Midterm Guide: International Financial Reporting Standards, International Accounting Standards Board, Accounts Payable

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Accounting the information system that identifies and records the economic events of an organization and then communicates them to a wide variety of interested users. External users (investors, lenders, and other creditors) use accounting to see the risk of lending money, and decide whether or not to grant credit: taxing authorities (ex. Canada revenue agency) want to know whether the company respects the tax laws: regulatory agencies (ex. Provincial securities commissions that regulate companies that sell shares to the public) want to know whether the company is operating within prescribed rules. Ethics in accounting is of the upmost importance to accountants and decision makers who rely on the financial information they produce. Three common forms of business organization: proprietorships, partnerships, and corporations. A proprietorship is a business owned by one person. The owner receives any profits, suffers, and losses and is personally liable for all debts of the business (unlimited liability) Taxed on the owner"s personal income tax return.