Management and Organizational Studies 1023A/B Study Guide - Midterm Guide: Accounts Payable, Accounts Receivable, Resource Allocation

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

Document Summary

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. Global economic systems depend on reliable and accurate financial reporting. Accounting identifies and records the economic events of an organization and communicates to interested users. Want to know whether the company respects the tax laws. Want to know whether the company is operating within prescribed rules. Are interested in whether a company will support it"s product lines and honour product warranty. For accounting information to have value, preparers must have high ethical standards: Accountants and other professionals have rules or codes of conduct to guide ethical behaviour. You & the business are the same, goes on your personal income tax. The reporting entity concept requires that the economic activity that can be identified with a particular company be kept separate & distinct from the activities of the owner"s and of all other economic entities.