Management and Organizational Studies 3370A/B Lecture Notes - Lecture 1: Canada Revenue Agency, Net Income, Capital Budgeting

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Maria Ferraro

Document Summary

Lecture 1: the purpose and use of financial statements. Internal users: managers plan, organize, and run a business, ex of internal users: Tax authorities (canada revenue agency); whether the company respect the tax laws. Regulatory agencies (provincial securities commissions that regulate companies that sell shares to the public); whether the company is operating within prescribed rules. Customers; whether the company will support the product line and its warranties. Employees and labour unions; whether company is able to pay their salaries. Ethical behavior by users: for accounting information to have value to its users, it must be prepared by individuals with high ethical standards. Use professional or organization"s code of ethic to identify ethical situation and issues (can refer to the written codes of ethics for guidance: identify and analyze the main elements in the situation. Identify the stakeholder persons or groups who may be harmed or benefited.