COMMERCE 1AA3 Chapter Notes - Chapter 1: International Financial Reporting Standards, International Accounting Standards Board, Relate
19 Apr 2018
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Objective 1 : explain why accounting is the language of business: accounting info. System that measures business activities, processes data into reports. 1. 1 illustrates the flow of info in an accounting system. Managers to set / evaluate goals and take corrective action. Investors to decide whether to invest in a business or evaluate an investment. Creditor to evaluate a borrower"s ability to make required payments. Government & regulatory bodies such as canada revenue agency to ensure. Individuals to make investments decisions and/or manage a bank account. In virtually the same way as organizations pay the correct amount of taxes. profit organizations. Accounting info can be classified into 2 categories: financial accounting provides info for managers inside the business and for decision, managerial accounting generates inside info for internal use by management. makers outside the organization (e. g investors/creditors) D. types of business org: proprietorship :
