RSM100Y1 Lecture : chapter 14 notes
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What is accounting: accounting: a comprehensive system for collecting, analyzing, and communicating financial information. o. Business managers: use accounting info to set goals, develop plans, set budgets, and evaluate future prospects. o. Employees and unions: use accounting info to get paid and receive benefits and insurance. o. Investors and creditors: use accounting info to estimate returns and decide if a company is worth investing in. o. Tax authorities: use accounting info to plan for tax flows and to ensure correct amounts are paid on time. o. Government regulatory agencies: rely in accounting info to fulfill their duties investors. Require firms to disclose their financial information to potential. What are accountants and what do they do: controller: the individual who manages all the firm"s accounting activities, financial accounting system: the process whereby interested groups are kept informed about the financial condition of a firm. o. Interested groups include consumer groups, unions, shareholders, and gov"t agencies. o.
