MGAB01H3 Chapter Notes - Chapter All covered: Net Profit, Weighted Arithmetic Mean, Consignor

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: George Quan Fun

Document Summary

External decision makers- parties outside the firm such as investors, bank loan officer. Statements can be prepared any time but are mostly done in a specific period consistently. Accounting entity- is the organization for which financial data are to be collected. Assets are recorded as the total cost to incur it. Provisions are estimated amounts payable in the future but the exact amount and timing depend on future events. Creditors look at assets as way to judge whether the company has sufficient resources available. C(cid:396)edito(cid:396)s (cid:272)o(cid:374)side(cid:396) sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455) as a p(cid:396)ote(cid:272)ti(cid:448)e (cid:272)ushio(cid:374). Statement of comprehensive income reports the change in sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455) du(cid:396)i(cid:374)g the period excluding exchanges with shareholders. Statement of earnings reports revenue and expenses of the accounting period. Accounting period- the time period covered by the financial statements. Statements of changes in equit(cid:455) (cid:396)epo(cid:396)ts all (cid:272)ha(cid:374)ges to sha(cid:396)eholde(cid:396)"s e(cid:395)uit(cid:455) du(cid:396)i(cid:374)g the pe(cid:396)iod.