Textbook Notes (362,879)
Canada (158,081)
RSM100Y1 (431)
Chapter 1

Accounting Chapter 1 notes

10 Pages
Unlock Document

University of Toronto St. George
Rotman Commerce
Michael Szlachta

Chapter 1: The Financial Statements Financial Statements -core of financial accounting = basic financial statements: -income state (the statement of operations) -statement of retained earnings -balance sheet (the statement of financial position) -cash flow statement -financial statements= business documents that companies use to represent their finances to the public Accounting -the information system that measures business activities, processes data into reports and communicates results to decision makers -accounting= language of business -accounting produces financial statements that report information about a business entity -financial statements measure performance Users of Accounting Information -individuals: regular people -investors and creditors -government and regulatory agencies -taxing authorities -not-for-profit organizations Kinds of Accounting: Financial Accounting and Management Accounting -financial accounting: provides information for people outside the firm; investors, creditors, government agencies, and the public must meet standards of relevance, reliability, and disclosure -management accounting: generates inside information for the managers management information is tailored to the needs of managers and must also meethigh standards of reliability Ethics in Accounting and Business -ethical considerations = important to accounting -companies need money to operate -companies provide information to eh public: to attract investors and obtain loans -The Canadian and provincial governments have laws that require companies to report relevant, reliable information to outsiders -relevant= the information ahs predictive value or feedback value and is timely influence www.notesolution.com
More Less

Related notes for RSM100Y1

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.