MGT120H5 Chapter Notes - Chapter 1: International Financial Reporting Standards, Financial Statement, Cash Flow Statement

• School: UTM
• Department: Management
• Course: MGT120H5
• Professor: Catherine Seguin

Document Summary

Financial statements reports that companies use to convey financial results of their business activities to groups (i. e. managers, investors, etc. ) Income statement (statement of profit or loss) Cash flow statement (statement of cash flows) Accounting an information system that measures and records business activities, processes data into reports and reports results to decision makers. Accounting requires an understanding of the principles used to accurately report financial information as well as judgment to interpret them. Managers making business decisions (i. e. should we buy out. Individuals how people should save their money. Not-for-profit cra requires donations to be recorded. Internal and external users rely on financial accounting information. Internal uses are the only ones who rely on managerial accounting information. Financial accounting provides information for managers and decision makers outside of the business. Managerial accounting provides inside information for managers of an organization (i. e. budgets, forecasts, etc. ) Proprietorship unincorporated business with a single owner. Accounting information does not include proprietors personal belongings.