ACCT1001 Chapter Notes - Chapter Chapter 1: Mccain Foods, Legal Personality, Chief Financial Officer
Document Summary
Accounting: information system that identifies, measures, records and communicates relevant information that represents an organization"s economic activities: helps people make better decisions, assess opportunity/product/investment options. Business: one or more individuals selling products or services for profit: can be as small as an in-home daycare to as large as canadian tire, nearly 100,000 new businesses are started in canada each year. Private enterprise (pe): corporation that does not offer its shares for public sale i. e, mccain foods limited. External users: those who are not directly involved in running the organization (includes: shareholders, lenders, directions, customers, suppliers, etc. ) Important in increasing the usefulness of financial statements to users: underlying concepts that make up acceptable accounting practices. Internal users: those who are directly involved in managing and operating an organization. The internal role of accounting is to provide information to help internal users improve the efficiency and effectiveness of an organization in delivering products or services.