GMS 802 Chapter Notes - Chapter 7: Fiduciary, Financial Analysis, Public Company Accounting Oversight Board

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 802
• Professor: Jian Guan

Document Summary

Corporations need to count and project how much money they are going to make. Finance is a method to evaluate, or a policy to fund operational decisions. Accounting counts and classifies what operations have occurred. Finance and accounting functions perform within a set of standards, values, and strategic interests of a larger organization and of the discipline. The identification and prioritization of assumptions incorporates the various stakeholders of situation, and the financial models and statements are used to make decisions and move toward value-laden goals. How the organization funds its operations reinforces organizational goals and values by creating specific opportunities while limiting other options. Finance and accounting support the ongoing operations of an organization. Finance helps us project future scenarios and make decisions. Accounting helps us reconcile and understand what is happening and what happened organizations. Both provide information that is essential for decision making within.