BUS 251 Chapter Notes - Chapter 1: Canada Revenue Agency, Financial Statement, Financial Accounting

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Steve Gibson

Document Summary

Financial accounting- this is the process by which inoformation of transactions of the transactions of an organisation is captured, analyzed and used to report to decision makers outside of the organizartion"s management team. Decsion makers are referred to as financial statement users and normally include the owners (investors) and those that have lent money to the organization (creditors). The inforamtion that financial statement users get is their window into the organization as they are not involved in the day to day operations of an organization. Users inside the organization (management) have access to all of the organizations information including information that is never shared outside the organization. Financial statements these are management"s reports to the company"s owners that are produced at the end of each accounting period. Stakeholders need an understanding of financial accounting and below are some common questions they usually need answers to.