[BU127] - Final Exam Guide - Ultimate 106 pages long Study Guide!
6
BU127 Full Course Notes
Verified Note
6 documents
Document Summary
Creditors (ex. banks): lend money to a company for a speci c length of time. Creditors gain by charging interest on the money they lend. Shareholders): individuals who buy small percentages of large corporations. Hope to gain from their investment in two ways: expect to receive a portion of what the company earns in the form of cash payments called dividends. Hope to eventually sell their share of the company at a higher price than they paid. Financing activities: the exchanges of money between a company and its lenders and investors. Investing activities: transactions that involve the sale or purchase of equipment, plants, properties, securities, or other assets generally not held for immediate resale (long-term assets) The business operations: purchase materials and labour (from suppliers, manufacture product, sell products to customers, collect cash from customers and pay creditors. Accounting: a system that collects and processes (analyzes, measures, and records)
