ACCT 2220 Lecture Notes - Lecture 1: Legal Personality, Retained Earnings, Financial Statement
28 Feb 2016
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Accounting information system that identifies and records the economic events of an organization and then communicates them to a wide variety of interested users; Plan, organize and run companies (work for the company) ex. finance directors, marketing managers, etc. Need detailed accounting info on a timely basis. Investors (make decisions to buy, hold or sell their ownership interest), lenders (evaluate risks of lending money), suppliers (decide whether or not to grant credit to a customer) Information must be prepared by individuals with high standards of ethical behaviour. Two primary ways of raising outside funds for corporations are borrowing money and issuing (selling) shares in exchange for cash. Liabilities amounts owed to lenders and other creditors (in the form of debt and other obligations) Assets resources that a company owns or controls, which are capable of providing future economic benefits: operating. Day to day activities (ex. employees needed, management team, location, rent)
