COMM 103 Chapter Notes - Chapter 14: Accounts Payable, Capital Asset, Current Liability

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gary Bisonnette

Document Summary

Role of financial statements role of senior management is to determine organization"s overall direction and direct tactics/strategy to achieve vision & objectives. Nancial statements allow managers to keep their nger on the pulse of the organization : monitor overall liquidity/solvency position, growth & pro tability & operating ef ciency, make decisions for long term pro tability & growth. Gross pro t margin: portion of revenue that is left over after direct costs are paid (revenue- Pro tability margin: revenue that is left after all operating expenses are paid. Operational transactions: ow of money within organization for day-to-day business dealings (revenue/expenses) Capital asset transactions: decisions made in respect to investment and divestment of capital assets. Capacity to weather market downturns, invest & borrow. # units sold selling price: cost of goods sold (cogs): expenses directly incurred during manufacturing, gross pro t margin: money left over for other expenses/objectives total revenue (a) - direct expenses (b, general operating expenses: indirect expenses.