RSM100Y1 Chapter 1: Accounting Chapter 1 notes
Document Summary
Core of financial accounting = basic financial statements: Financial statements= business documents that companies use to represent their finances to the public. The information system that measures business activities, processes data into reports and communicates results to decision makers. Accounting produces financial statements that report information about a business entity. 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. 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 decisions.
