Management and Organizational Studies 2310A/B Chapter Notes - Chapter 2: Public Company, Tax Law, Tax Rate

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Nicholas Kahnert

Document Summary

Chapter 2: financial statements, cash flow, and taxes. Financial statements are a key source of information for financial decisions. Our goal is to examine these statements, point out some relevant features. Cash flow mean the difference between the number of dollars that come in and the number that go out. Bankers lending to businesses are looking increasingly at borrowers" cash flows as the most reliable measures of each company"s ability to repay its loans. Statement of financial position: financial statement showing a firm"s accounting value on a particular date. Publicly traded firms ----> international financial reporting standards (ifrs). Under ifrs, a company enjoys flexibility over how to present its statement of financial position. - can be tangible (truck, computer), intangible (trademark,patent) Current asset has a life less than a year. - ex. ) inventory normally be purchased and sold within a year, and cash. - ex. ) accounts receivable (money owed to the firm by its customers).