RSM100Y1 Chapter Notes - Chapter 25: Gross Margin, Cash Flow, Debt Ratio
Document Summary
Accounting: measuring, interpreting, communicating financial information to support internal and external business-decision making. Helps employees better understand how their work contributes to company success. Financing activities provide necessary funds to start business, expand. Investing activities provide valuable assets that are needed to run business. Operating activities focus on selling goods and services, view expenses as important elements of sound financial management. Public accountant: accountant who provides services to other organizations. Unbiased advice because not employees of client firm. Collect, record financial transactions, prepare financial statements used by firm"s manager"s in decision making. Tax accountant minimizes firm"s tax bill, handles tax returns. Generally accepted accounting principles: principles that outline conventions, rules, procedures for deciding acceptable accounting practices at a particular time. Consistent, relevant, faithful representation, reliable timelines, understandable, verifiable, comparable. Accounting standards board: interprets modifies gaap in canada. Ifrs allow financial statements to be compared country to country. Accounting cycle: set of activities converting information and individual transactions into financial statements.
