BU127 Study Guide - Midterm Guide: Accounts Receivable, Bank Reconciliation, Bank Statement
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BU127 Full Course Notes
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Corporate governance- the procedures designed to ensure that the company is managed in the interest of the shareholders. Board of directors- elected by shareholders to represent their interests, responsible for maintaining the i(cid:374)tegrit(cid:455) of the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s fi(cid:374)a(cid:374)(cid:272)ial reports. Unqualified (clean) audit opinion- auditors" de(cid:272)laratio(cid:374) that the fi(cid:374)a(cid:374)(cid:272)ial state(cid:373)e(cid:374)ts are fair presentations in all material respects in conformity with ifrs. Institutional investors- managers of pension, mutual, endowment funds that invest on behalf of others. Private investors- indiviudals who purchase shares in companies. Faithful representation- must reflect the substance of underlying transactions. Verifiable- independent accountants can agree on the nature and amount of the transaction. Understandability- quality of info that enables users to comprehend its meaning. Cost constraint- info should be produced only if the perceived benefits of increased decision usefulness exceed the expected costs of providing that info. Credit card discount- the fee charged by the credit card company for its services.
