Management and Organizational Studies 1023A/B Midterm: MOS 1023 - Finance and Accounting - Midterm 1

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

Document Summary

Accounting: measures business activities, process data into reports (financial statements, communicates results to decisions makers. Accounting identifies and records the economic events of an organization and communicates to interested users. Internal users; managers (plan, organize, and run a business) Various decisions: pricing, marketing, strategy, employee compensation, capital budgeting, resource allocation. External users; investors, creditors (like banks)-- (these two are primary users) Others: tax authorities (revenue canada, regulatory agencies, customers (big ticket items with warranties, labour unions, economic planners, communities. Similar to proprietorship except owned by more than one person. Separate legal entity owned by shareholders (owners of shares) Service business; disney, air canada, hotels, merrill lynch (financial advice), rogers: not always black and white many hybrids. Obtaining (and repaying) funds to finance the operations of the business. Examples -- borrowing money or repaying loans (debt), selling or repurchasing shares (equity) Obtaining the resources or assets needed to operate the business for the long term.