ADM 1340 Chapter Notes - Chapter 1: Cash Flow Statement, Legal Personality, Financial Statement

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Philip Mc Ilkenny

Document Summary

Accounting identifies and records the economic events of an organization and communicates to interested users. There are 2 broad categories of users: o! Managers, employees, and others who plan, organize and run the company. For accounting information to have value, preparers must have high ethical standards: o! Accountants, other professionals and most companies have rules or codes of conduct to guide ethical behavior. Similar to proprietorship except owned by more than one person o! Separate legal entity owned by shareholders (owners of shares) o! All companies are involved in all three activities o! Statement of cash flows is made up of info from the income statement, and then get to a cash flow figure for operations. And then use info from the balance sheet (this years and last years). We can work out cash flows from operations. The investing section deals with the remaining part of the assets. Cash flow statement is prepared after completing income statement and balance sheet.