[Management and Organizational Studies 1023A/B] - Final Exam Guide - Comprehensive Notes fot the exam (105 pages long!)

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

Document Summary

Similar terms: legal/taxable entity any profits earned in one business is added to the other, economic/reporting/accounting entity, revenue/sales/fees earned, expenses/cost of goods sold (refers to inventory) Legal entity the form of business (i. e. sole proprietorship, partnership, or corporation) Why does accounting matter: accounting is the language of business, global economic systems depend on reliable and accurate financial reporting. ** whether you plan to become an accountant or not, a working knowledge of accounting will be relevant and useful in whatever role you assume as a user of accounting information. Accounting an information system that identifies and records the economic events of an organization and communicates to interested users. Two broad categories of users (who uses accounting): internal users. These users plan, organize, and run a business. These users need detailed accounting information on a timely basis (i. e. must be available when needed) Various decisions pricing, strategic, marketing, employee compensation, capital budgeting, resource allocation. Primary users investors, creditors, and lenders.