RSM219H1 Chapter Notes - Chapter 1: Legal Personality, Montreal Exchange, Accounts Payable

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Elisa Zuliani

Document Summary

Chapter 1: the purpose and use of financial statements. Accounting is the information system that identified and records the economic events of an organization, and then communicates the to a wide variety of interested users. Economic systems depend on highly transparent, reliable, and accurate financial reporting. Users of accounting information divided broadly into two types internal and external users. To answer these questions, accounting information must be available on a timely basis. External users investors use info to make decisions to buy, hold, or sell their ownership interest, or creditors, such as suppliers and bankers, use accounting information to evaluate the risks of granting credit or lending money. Financial info. must be prepared by individuals with high standards of economic behaviour. Accountants and other professionals have extensive rules of conduct to guide their behaviour with each other and the public. In addition, many companies today have extensive rules of conduct to guide their behaviour with each other and the public.