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

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

Document Summary

Financial accounting = process by which info on transactions of organization is captured, analyzed & used to report to decision makers outside of org"s management team. Incl. owners (investors) & those who have lent $ to the org (creditors) Primary purpose of financial accounting = aid users in their econ decision-making relative to the org. Users generally outside of org & not involved in day-to-day ops, financial accounting info is their only window into org. Users inside org (management) need financial accounting info for diff purposes. Managers in national retail chain may need info for particular store rather than whole org. Managers may need info to develop forward-looking budgets. Managerial accounting = management has access to all of org"s financial info, incl. info that is never shared outside of org. Financial statement = management"s report to company"s owners prod. at end of ea accounting period. Private company = less shareholders, public = many 1000s.