Final Flashcards
Financial Accounting
the branch of accounting that
addresses the needs of
external stakeholders
IFRS
International financial reporting standards
accounting standards that
are used in the preparation
of financial statements
IFRS accountants ensure financial statements
Consistent
Reliable
Comparable
Relevant
Assets =
Liabilities + Owner’s Equity
Balance sheet
summarizes a firm’s financial position at a specific point in time
Net income=
Revenue-Expenses
Income Statement
summarizes a firm’s operations over a given period of time in terms of profit and loss
Statement of Cash Flow big 3
Operations
Investing
Financing
Statement of retained earnings
reports how retained earnings have changed
Shareholders’ equity statement
reports how net income and dividends affect retained earnings
also look at these when looking at financial statements
Auditor’ report
Notes to financial statements
Comparative statements
Managerial accounting
provides reports and analysis to managers to help them make informed decision
Managerial accountant responsibilities
Determining product costs
Performing incremental analysis
Developing budgets
Product Costing
managers assign costs to the products and services
Direct costs can be
directly traced to production
Indirect costs are the result of
general operations
Activity-Based costing
a technique used to assign product costs based on links between activities that drive costs and the production of specific goods
Incremental analysis
evaluates the financial impact of different alternatives in a decision making situation
Do or outsource?
Budgeting
Outlines how ressources will be used to meet goals
Translates goals into measurable quantities and identifies resources
Communication and coordination among managers and employees
Motivates achievement of goals
Monitors progress
Operating budgets
identify sales and production goals
- Sales budget
- Production budget
- Direct labour
Financial budgets
focus on firm’s financial objectives
-Cash budget
-Capital budget
Top down budgeting
top management prepares budget with little or no input from middle and supervisory managers
Bottom up or participatory budgeting
middle and supervisory managers actively participate
Master Budget
brings together all of the budgets to represent the overall plan
M1 money supply
all currency + chequing accounts and traveller’s cheques
M2 money supply
M1 + plus savings accounts, money market accounts and certificates of deposit
BOC
-Manages Canada’s monetary policy
-Provides banking services for other banks and the government
-Coordinates the cheque clearing process
-Maintains the federal gov chequing account
-keeps the currency supply in good condition
Fundamental Rights of capitalism
-The right to own a business and keep after tac profits
-The right to private property
-The right to free choice
-The right to fair competition
4 degrees of competition
Pure competition
Monopolistic competition
Oligopoly
Monopoly
Supply
relationship between price of a good and the quantity that suppliers will offer for sale
Supply curve
a graph of supply curve(upwards)
Demand
Relationship between the price of a good and the quantity buyers will buy
Demand curve
a graph of the demand curve relationship
(downward)
Equilibrium
meeting point
market adjusts to it
Planned economy
Socialism and Communism
Socialism
gov controls key enterprises
higher taxes to distribute wealth
Communism
public ownership of all enterprise
strong central government
Measures to evaluate Economic performance
GDP
Employment level
Business cycle
Price levels
Productivity
Business cycle:
Peak
contraction
trough
recovery
expansion
peak
Inflation
prices rising
Hyperinflation
average price increase 50% per month
Disinflation
Increase slow down
Deflation
avrg prices decrease
Human ressource management
maximizing the effectiveness of the workforce
Human ressource mgmt pt 2
-Recruiting world-class talent
-Promoting career development
-Boosting organizational effectiveness
Strategic Planning
-Recruitment
-Selection
-Training
-Evaluation
-Compensation
-Seperation
Job analysis
study of jobs within an org
Job description
responsibilities
Job specifications
requirements for the job
Internal recruiting
transferring or promoting employees within company
Internal recruiting benefits
-boosts morale
-proven track record
-has lower recruiting costs
external recruiting methods
-Employment websites
-Newspaper ads
-Trade association
-University
-Employment agencies
Recruiting resources
Employee referrals
Selection process
-Application
-Interviews
-Testing
-references and background checks
STAR
Situation
Task
Action
Result
Contingent workers
Temporary full time
Independent contractor
On call
Training allows for
increase innovation
increase tech adoption
increase productivity
increase motivation
decrease liability
Orientation
first step in development process
Introduce employees to the company culture
Strong orientation reduce turnover
Other training option
-Computer based
-Management development
Management development
programs to help current and an potential executives develop leadership skills
Performance appraisls
formal feedback that can affect compensation, incentives, promotions, transfers and terminations
Compensation based on
-Competition
-Contribution
-Ability to pay
-Cost of living
-Legislation
Compensation
pay + benefits
wages
pay in exchange for the number of hours/days of employee work
Salary
the pay for a fixed period
Benefits
non cash compensation
Pay for performance
-Commission
-Bonuses
-Profit Sharing
-Stock options
-Pay for knowledge
Optional Benefits
Extra paid vacations
Paid sick days
Extended health care and dental
Retirement programs
Product discounts
Cafeteria style benefits
employees have a limit but can chose benefits
Flexible scheduling
-Flextime (9-5 or 7-3)
-Compressed workweek
Telecomuting
Reasons employees will leave
-Promotion
-Hired
-Laid off
-Transferred
-Career Change
-Personal reasons
Employment Equity Act
aims to achieve equality in the workplace of federally regulated employers that have 100 or more employees
Employment standards legislation
defines minimum workplace standards, such as hours of work and minimum wage
Top management
articulate vision
Establish priorities
Middle Management
Facilitate communication
Coordinate teams
lower
Train, motivate, and evaluate employees
Manage daily processes
Management Skills
Human Skills
Technical Skills
Conceptual Skills
Time Management
Critical Thinking
Maslow Hierarchy
-Physiological: livable wage
-Safety: job security, health care, safety equipment
Social: teamwork, belonging
Esteem: promotion, acknowledgement
Self-Actualization: Challenging/creative job
Theory X
Workers dislike work
Fear is motivating
People prefer to be directed
Theory Y
-Work is natural
-different rewards can be motivating
-People accept and can seek responsibility
- Creativity and ingenuity is distributed in the pop
-intellectual capacity of workers is underutilized
Job enrichment
Skill variety
Task identity
Task significance
Autonomy
Feedback
Expectance theory
centers on the relationship among ind effort, performance and reward
Equity Theory
centers on how the perception of fairness directly impacts workers motivation
Motivation Today
-Range of motivation approaches
- Engaged and productive workers
-Emphasis on corporate culture
-Expanded Incentives
-Focus on training and development
3 types of planning
Strategic
Tactical
Operational
Strategic Planning
Senior mgmt
5 year frame
Ex: buy a company, go public
Tactical Planning
Middle management
1 year frame
Should we change marketing tactics, should we invest in production equipment
Operational planning
First-line management
Daily, weekly, monthly
How do we schedule employees.
Contingency Planning
How do we respond to competitor lowering prices.
What happens if there’s a fire.
Contingency Planning is based focused on
probable and harmful issues
Setting the agenda
Define the mission
Evaluate competitive position
Set goals
Create strategies
Implement Strategies
Gen Y is
Goal driven
Now focused
Change oriented
Tech savvy
Diverse
Idealistic
Fulfillment focused
Strong goals are
quantifiable
Reason for international trade
Access to factors of production
Reduced risk
Inflow of innovation
Against international trade
Loss of jobs
Loss of industries
Increase in foreign ownership
GATT
General Agreement on tariffs and Trade
WTO
World Trade Org
promotes international trade and settles trade disputes
World bank
provides financial assistance and low interest loans to countries
IMF
International Monetary Fund
Supports stable exchange rates and facilitates international payments
