RSM100Y1 Chapter Notes - Chapter 15: Management Consulting, Tax Preparation In The United States, Financial Statement
Document Summary
Accounting: the process of measuring, interpreting and communicating financial information to enable people inside and outside the firm to make informed decisions. Accountants gather, record, report and interpret financial information in a way that describe the status and operation of an organization and aids in decision making. The major users of accounting information are managers of a business, government agency, or not-for-profit organizations. Accounting information helps them to plan and control daily and long-range operations. People who support open book management believe that allowing employees to view financial information helps them to better understand how their work contributes to the company"s success, which, in turn, benefits the employees. They provide important information to help managers deal with the competitive and economic environments. Accountants help others to understand, predict, and react to the technological, regulatory and social and cultural environments. All organizations, for-profit and not-for profit, perform three basic activities, and accounting plays a key role in each:
