Management and Organizational Studies 1023A/B Chapter Notes - Chapter 1: Accounts Payable, Finance Lease, Accounting Equation

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Global economic systems depend on highly transparent, reliable, and accurate financial reporting. Accounting: identifies and records the economic events of an organization and communicates them to interested users. Users of accounting information can be divided into two broad categories: Internal users: plan, organize, and run companies (ex. finance directors, managers, hr personnel, need detailed accounting info on a timely basis, various decisions: Lenders evaluate risks of lending money: creditors decide whether to grant credit, others. Tax authorities use financial statements to assess company"s income tax. Labour unions bargain for better salaries and benefits. For accounting info to have value, preparers must have high ethical standards: actions are legal and responsible, consider organization"s interest. Accountants and other professionals have rules or codes of conduct to guide ethical behaviour. A business organized as a person than one person separate legal entity owned by shareholders. Owner has control over owned by more people continues regardless of business.