ACCT-240 Chapter Notes - Chapter 1: Financial Statement, Balance Sheet, Professional Code Of Quebec

• School: American University
• Department: Accounting And Taxation
• Course: ACCT-240
• Professor: Darlene Suprenant

Document Summary

Chapter 1 - financial statements and business decisions. Hopes to gain by charging interest on the money lent. Creditors may force the sale of assets sufficient to meet their claims. Some creditors" claims aren"t met, and they take a loss. Proceeds from sales come first to creditors, then to owners when a company goes under. Eventually sell their part for more than what they paid. Borrowing, paying back, receiving additional funds, paying dividends. Purchase parts and labor -> manufacture -> sell to costumers -> collect cash and pay suppliers. Companies who sell parts of the finished product. The same company can be supplied by some and supply others. Accounting entity is the organization for which financial data are to be collected. Developing this information for internal decision makers is management accounting. Accounting for external decision makers is financial accounting. Usually prepared at the end of each quarter (quarterly) and of the year (annual)