ACCT 2220 Lecture Notes - Lecture 1: Financial Statement, Share Capital, Retained Earnings
29 Mar 2016
School
Department
Course
Professor
Document Summary
Learning objectives: uses and users of accounting, forms of business organization, business activities, communicating with users. Accounting is the information system that identifies and records the economic events of an organization, and then communicates them to a wide variety of interested users. The world"s economic systems depend on highly transparent, reliable and accurate financial reporting. Internal users of accounting information plane, organize and run companies, ex. financial directors, marketing managers, human resource personnel, production supervisors and company officers. External users include investors, lenders and other creditors. Others include potential employees, labour unions and taxing authorities. Reporting entity concept: the concept that economic activity that can be identified with a particular company must be kept separate and distinct from the activities of the owner(s) and of all other economic entities. Dividends: distribution of retained earnings from a corporation to its shareholders, often in the form of cash.
