ACC 100 Lecture Notes - Lecture 1: Retained Earnings, Financial Statement, Resource Allocation
11 Oct 2016
School
Department
Course
Professor
Document Summary
Business sectors: primary: grow/gather ray materials (trees, secondary: convert raw materials into products to consume (car manufacturing, tertirary: sell products to consumers (canadian tire, leaons, resturants) Tertirary industry: retailer: earns profit by reselling products to consumers (walmart/costco, wholesaler: buys large quantities from manufacturers -> warehouses -> resells to retailers. They have an objective (what they want from it) Internal: work for the business- objectives= promotion, etc. By better understanding the stakeholders and their objectives we can better understand the need for financial information and how important it is that stakeholders can depend on that information for their decision making. Ensure taxes are minimized and tax laws are followed. Decide to invest or not invest, earn income from their investment. Ensure businesses pay taxes, employ more people, follow laws. Buy quality products at low prices, get the best warranties on products or services. Sell products/services to the business, get paid on time and in full.
