BUS 251 Chapter Notes - Chapter 1: Legal Personality, Canada Revenue Agency, Management Accounting
12 Jan 2017
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Financial accounting: the process by which information on the transactions of an organization is captured, analyzed, and used to report to decision makers outside of the organization"s management team. Management has access to all of the organizations nancial information - this information is known as managerial accounting. Employees/unions, management, auditors/ federal and provincial govt departments/ legistlators, potential investors/customers, stock analysts/brokers/financial. A company is owned by its shareholders. Private company: there may be a single owner. Creditors are those who lend money or otherwise extend credit to a company rather than investing in it directly: 1. Banks and credit unions lend money to companies seeking to collect interest, the initial loan in called the principal. Large companies seek long-term borrowing arrangements by issuing corporate bonds: 2. Suppliers, employees, and the various levels of government. These groups often sell goods or provide services prior to receiving payment.
