MGT120H5 Chapter Notes - Chapter 1: Cash Flow Statement, Accounts Payable, Retained Earnings
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MGT120H5 Full Course Notes
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Document Summary
Objective 1: financial statements = product of accounting: are business docs that companies use to report results of their activities to various users. Produces following: income statement, statement of changes in equity, balance sheet and statement of cash flow. Is the info system that measures business activities, processes data into reports and communicates results to decision makers. People make decisions business trasactions occur business prepare reports to show results of their operations. Individuals, businesses, investors & creditors, gov regulatory agencies, taxing authorities, non profit org. Info must be presented in systematic reports & meet gaap standards for relevance and reliability. Financial and operating data about firm"s activities, processes, operating units products, services and customers. Info: can be generated thru assumptions, future oriented, not governed by gaap. Public corporation shares are sold on the stock exchange (e. g. ibm, dell, hp, etc) Private corporation shares are privately held (accounting information not released to public) Corporation: stocks shareholders chief operating officers, presidents, managers.
