MGTA02H3 Chapter Notes - Chapter 4: Standard Accounting Practice, Financial Accounting, Financial Statement
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MGTA02H3 Full Course Notes
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Document Summary
Accounting: a comprehensive system for collecting, analysing and communicating. Accounting information system (ais): an organized procedure for identifying, measuring, recording and retaining financial information so that it can be used in accounting statements and management reports. Business managers use accounting information to set goals, develop plans, set budgets and evaluate future prospects. Employees and unions use accounting information to get paid and to plan for and receive such benefits as health care, insurance, vacation time and retirement pay. Investors and creditors use accounting information to estimate returns to stockholders, to determine a company"s growth prospects, and to decide if the company is a good credit risk before investing or lending. Taxing authorities use accounting information to plan for tax inflows, to determine the tax liabilities of individual and businesses, and to ensure that correct amounts are paid in a timely fashion.
