ACC 100 Chapter Notes - Chapter 1-2: Making Money, Financial Statement, Accounting Equation

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Else Grech

Document Summary

Business is taking raw materials and developing it into products and selling them to the market (raw-->manufacture-->produce goods/services and sell) A story told to internal (inside - your manager etc), external (banks to get loans or investors to prove its worth investing), and government about your costs and profits made in your business. The story told would be managerial accounting (internal users), financial accounting / gaap format (external), tax accounting / internal revenue code format (government) To external users you want to look good (high profit, attract investors etc) To government you want to look poor made nothing so your taxes are cut/less. To internal user there"s no incentive, its just to tell it accurately because that"s what managers would use to make decisions. Their concerns and questions regard the profits being created by the business and they like assessing the business activity to see if it"s healthy or not.