BUS 251 Chapter Notes - Chapter 1: Consolidated Financial Statement, Cash Flow Statement, Canada Revenue Agency

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Managerial accouning: financial informaion needed by managers to make economic decisions about their organizaion and also make forward-looking budgets. Financial statements: management"s reports to the company owners that are produced at the end of each accouning period such as every quarter, or every year. Included in the annual report together with management"s discussion and analysis (md&a). Owned by shareholders who have provided cash and other assets to the corp. for shares. Liability of the shareholders is limited to their investment in the company. Public companies: shares are traded on stock exchanges and are widely held. Private companies: trade privately, narrowly held and not easily transferrable. Management: most shareholders are not involved in day to day aciviies so they hire a board of directors known as management to represent them. They have the power to hire, ire, operate the company, keep shareholders informed using inancial and management reports.