Management and Organizational Studies 1023A/B Chapter Notes - Chapter 1: Legal Personality, Canada Revenue Agency, Sun-Times Media Group

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

Document Summary

Accounting: the process of identifying, recording and communicating the economic events of a business to interested users of the information. Financial reporting should be highly transparent, reliable, and accurate. Marketing managers must be able to decide on pricing strategies" based on cost (should have a bit of accounting background) Internal users of accounting information plan, organize, and run companies (people who work for the company) Include finance directors, marketing managers, human resource personnel, production supervisors, company officers. For internal users, accounting information provide internal reports (financial comparison of operating alternatives, projections of earnings from new sales campaigns, forecasts of cash need for the next year, analyses of sales costs, budgeted financial statements) Investors and creditor are the main external users of accounting information. Investors: use accounting information to make decisions to buy, hold, or sell their ownership interest (present and future shareholders) Creditors: suppliers, and bankers use accounting information to evaluate the risk of granting credit or lending money.