BSM 100 Chapter Notes - Chapter 7: International Financial Reporting Standards, Earnings Before Interest And Taxes, Current Liability
31 Oct 2017
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Document Summary
Accounting: a system for recognizing, organizing, analyzing, and reporting information about the financial transactions that affect an organization. Goal: provides its users with relevant, timely information that allows them to make sound economic decisions. Managers: marketing managers (sales, various product lines), financial managers (debt, cash, inventory, and capital) They make decisions based on financial position. Shareholders: these investors are interested in their company"s financial performance via financial statements. Employees: pay raises and bonuses if they have a strong financial performance. Jobs are linked to how well the organization is doing. Creditors: bankers and other lenders need to look at a financial statement before carrying out a loan. Banks and financial institutions who have already lent money. Suppliers: makes sure that the company can pay for its orders before continuing the transaction. Makes sure that there is no bad debt via previous financial statements) Government agencies: critical for meeting the reporting requirements.
