MGTA04 – 2009
Chapter 4 - Understanding Accounting (1)
Outline of Lecture - Key Points
What accountants do
Who uses accounting info
Two kinds of accounting info:
1. financial accounting
2. managerial accounting
Generally Accepted Accounting Principles
1. balance sheet
2. income statement Intro
Some articles from (2 Dec, 2006) Globe & Mail
Warner Music Group said yesterday it swung into profit in
the fourth quarter, but its results fell short of expectations.
Profit totalled $12-million (U.S.), or 8 cents a share, for the
three months ended Sep. 30, compared with a loss of $30
million or 21 cents a year ago.
Revenue fell 6 per cent to $854-million.
Embattled Ford Motor Co. slipped another notch last month
as its slaes fell an unexpected 10 per cent in the U.S. market,
and Toyota Motor Corp. surpassed it on a monthly basis for
the second time this year.
The gloom out of Detroit was disipated in Canada as sales in
this country rose 3 per cent last month. Who cares?
Board of Directors: Reward (or correct)
Shareholders: Buy more, or sell, shares?
Bankers: Will the loan will be repaid?
Employees: Will I receive profit sharing?
Government: How much tax is owing?
Managers: How am I doing?
Statisticians, economists, Governments,
academics, and - mostly - managers need to know
how well a business is performing, and whether it
is financially sound.
There are millions of Canadian business
enterprises, creating hundreds of thousands of
products and services, in hundreds of industries, i