INTG 201 Lecture Notes - Lecture 5: Financial Statement Analysis, Cover Charge, Management Accounting

• School: McGill University
• Department: Integrated Management
• Course: INTG 201
• Professor: Richard Donovan

Document Summary

Know: applications of accounting: accounting fundamentals in your everyday life, accounting definition: the art" of recording, classifying, summarizing in a significant manor. Decisions such as whether to buy or lease equipment. =management accounting: thinking about net income of a company (this company makes so much profit , trips with friends, who owes who, accounting in organizations and societies. 1: accountant: someone who conducts financial reporting, tax planning, budgeting. Provides useful financial information: accounting cycle, analyze transaction, assets- what you own, cash, inventory, investment, buildings, equipment, land, intangibles, accounts receivable. Journal entries: debits: assets, credits: l and d, share capital + retained earnings (revenues and gains v. expenses and losses, financial statements. Income statement- unlike the balance sheet, the income statementcalculates net income or loss over a range of time. The financial statements (continued: balance sheet= statement of financial position, assets= liabilities + equity, used to be calculated on two sides.