MGT120H5 Chapter Notes - Chapter 1: Cash Flow Statement, Retained Earnings, Accounting Equation

• School: UTM
• Department: Management
• Course: MGT120H5
• Professor: Kathy Falk

Document Summary

Accounting is the info system that measures biz activities, processes data into reports, and communicates results to decision makers: financial statements: Financial statements are the business documents that companies use to report the results of their activities to various user groups. The system of accounting produces the following statements: Income statement: statement of re, balance sheet, statement of cash flow, the flow of accounting information, people make decisions, biz transactions occur, biz prepare reports to show results of their operations. Individuals, biz, investors, creditors, govt regulatory agencies, taxing authorities, non-profit org. External users and internal users: financial accounting - summarize business transactions of business entity for a specified period, users: internal + external decision makers b. Info must: be present in systematic reports + meet gaap standards for relevance and reliability: management accounting - financial and operating data about an organization"s activities, processes, operating units products services and customers, users: internal decision makers b.