Management and Organizational Studies 1023A/B Chapter Notes -Cash Flow Statement, Fiscal Year, Income Statement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Global economic systems depend on reliable and accurate nancial reporting. Measures business activities - process data into reports ( nancial statements) - communicates results to decision makers. Good accounting is necessary for an economic system to work. Summarizes all the activities of a company for a time, summarize in to 4 or 5 statements. Accounting identi es and records the economic events of an organization and communicates to interested users. There are two broad categories of users. Managers plan, organize, and run a business. Tax authorities (revenue canada, doesn"t care about accounting rules) Labour unions (can employees get raise, or bene ts?) For accounting information to have value, preparer must have high ethical standards. Not necessarily going to be put in jail but can be reprimanded. Could easily get people to invest if you don"t tell them the truth, easy for us not to share info.