MGT120H5 Chapter Notes - Chapter 1: Financial Statement, Income Statement, Retained Earnings

264 views7 pages
9 Mar 2018
School
Department
Course
mrialim and 39483 others unlocked
MGT120H5 Full Course Notes
12
MGT120H5 Full Course Notes
Verified Note
12 documents

Document Summary

I(cid:374)troductio(cid:374) to accou(cid:374)ti(cid:374)g, purpose/relatio(cid:374)ships of differi(cid:374)g fi(cid:374)a(cid:374)cial state(cid:373)e(cid:374)ts, ethics. Reports that companies use to convey financial results of business activities to groups, like managers, investors, creditors, regulatory agencies, etc. These parties use the information to make decisions. Explain why accounting is the language of business. An information system that measures & records business activities, processes data into reports & reports results to decision makers. Who uses accounting information: managers: accounting information helps managers decide whether to introduce new products, set up regional offices, acquire competitors, extend credit to customers, etc, investors & creditors: they provide financing to a business. Investors want to know the rate of return. It also helps in reporting in the organization"s stewardship of funds received & allows it to comply with regulations. What is the 2 kinds of accounting: financial accounting: for internal & external users. Provides faithful representation of economic activities: management accounting: for internal users (managers). Accounting is used in every type of business.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents