MGT120H5 Chapter 1: THE FINANCIAL STATEMENTS
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MGT120H5 Full Course Notes
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Document Summary
Financial statements: are the reports that companies use to convey the financial results of their business activities to various user groups, which can include managers, investors, and regulatory agencies. Explain why accounting is the language of business. Accounting: is an information system that measures and records business activities, processes data into reports, and reports results to decision makers. Produces the financial statements that reports information about a business entity. Bookkeeping: is a mechanical part of accounting. Managers: have to make many business decisions. Individuals: manage bank accounts and decide whether to rent or buy, determine monthly income to decide how much to save and spend. Not-for-profit organizations: base decisions on accounting information, is the basis of reporting on the organization"s stewardship of funds received and its compliance with the reporting requirement of the canada revenue agency. Two kinds of accounting: financial accounting and management accounting.
