Management and Organizational Studies 1023A/B Chapter Notes - Chapter 1: Accounts Payable, Promissory Note, Financial Statement

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

Document Summary

Chapter 1- purpose and use of financial statements accounting is the information system that identifies and records the economic events of an organization and communicates them economic systems depend on highly transparent, reliable and accurate financial reporting. Internal users internal users of accounting information plan, organize and run companies external users are investors that use accounting information to make decisions to buy, hold or creditors evaluate the risks of granting credit to a company. Ethical behaviour in order for financial information to have value to its users, it must be prepared by individuals with high standards of ethical behaviour ethics in accounting is of the utmost importance. Proprietorship owned by one person simple to set up and gives you control, usually operated by the owner personally liable for all debts of the business no legal distinction between business and owner. Business activities all businesses are involved in three types of activity-financing, investing and operating.