BU227 Chapter Notes - Chapter 1: Double Taxation, Financial Statement, Kpmg
Document Summary
The nestle case: creditors: money lenders, loan for a specific length of time. Financial activities: when a company exchanges money with its lenders and owners. Investing activities: when a company buys/ sells property. Business operations: suppliers: sells company accessories and material for production, customers: examples include retail stores (sold through wholesale distributors) The accounting system: accounting: a system that collects and processes (analyzes, measures and records) financial information about an organization and reports that information to decision makers. Continuous detailed information plan/ manage day-to-day operations of the organization: managerial or management accounting developing accounting information for internal decision makers, external decision makers: investors (shareholders), bank"s loan officer (use reports produced by the system. Financial accounting: four basic financial statements and related disclosures. Four basic financial statements: two primary users: investors (owners) and creditors (lenders) Assets: economic resources controlled by the entity as a result of past business events and from which future economic benefits can be obtained. (left hand side)
