BU127 Lecture Notes - Lecture 1: International Financial Reporting Standards, Retained Earnings, Investment
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BU127 Full Course Notes
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The founder also functioned as manager of the business ( owner-manager) Individuals who buy small percentages of large corporations are called investors. They expect to receive a portion of what the company earns in the form of cash payments called dividends. The exchange of money between sun and its lenders and owners are called financing activities. Purchases or sales of property called investing activities. Sun managers is internal decision makers and parties outsides the firm is decision makers( investors in sun shares and bank"s loan officer_ Developing accounting information for internal decision makers is called managerial or management accounting. The focus of this text is accounting for external decision makers, called finnancial accounting. The four basic financial statements: the statement of financial position, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows. The organization for which financial data are to be collected and reported is called an accounting entity.
