ADM 1340 Chapter Notes - Chapter 1: Financial Statement, Legal Personality, Limited Liability

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Darlene Himik

Document Summary

Economic systems depend on highly transparent, reliable, and accurate financial reporting. Knowledge of accounting will always be useful. Those who plan, organize, and run companies. Ex) finance directors, marketing managers, human resources personnel, production supervisors, and company officers. To answer these questions, users need detailed financial information on a timely basis. Accounting for internal users provides internal reports such as: Projections of profit from new sales campaigns. Financial statements are for both external and internal. Use accounting information to buy, hold, or sell their ownership interest. Ex) lenders use the info to evaluate risks of lending money. Investors should i purchase shares of this company. Lenders and creditors will the company be able to pay its debts as they become due. Potential employees using annual reports to learn about the company. Labour unions use the info to bargain for better salaries and benefits. Taxing authorities (cra) use financial statements to assess a company"s income tax.