MGM101H5 Chapter Notes - Chapter 13: Financial Accounting, Financial Statement, Cash Flow
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MGM101H5 Full Course Notes
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Document Summary
The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions. A method used to record and summarize accounting data into reports by classifying transactions into different groups that have common characteristics. Sales documents, purchasing documents, shipping documents, payroll records, bank records, etc. The effects of those journal entries are transferred or posted into ledgers. Balance sheet, income statement, statement of cash flows, The main purpose of accounting is to help managers make informed decisions. Another purpose is to report financial information to interested annual reports, etc. stakeholders. Users of accounting information and their required reports: People interested in the organization"s income and financial position (owner"s, creditors, financial analysts, suppliers) Financial statements found in annual reports (income statements, balance sheet, statement of cash flow, etc. ) Financial statements and various internally distributed financial reports. The accounting profession is divided into 5 key working areas:
