BU127 Chapter Notes - Chapter 1: Double Taxation, International Accounting Standards Board, Canadian Securities Administrators
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BU127 Full Course Notes
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Bu127- chapter 1: financial statements and business decisions. Owner-manager: founder also functioning as manager of business. Creditors: lend money (e. g. local banks) for specific length of time. Gain by charging interest on money they lend. Investors: individuals buying small percentages of large corporations. Hope to receive dividends- portion of what company earns in form of cash payments. Hope to eventually sell their share of company at higher price than paid. Financing activities: when company exchanges money with lenders and owners. Investing activities: when company buys or sells property. Company distributes products through own distribution network throughout world to retail stores and customers through wholesale distributors. Accounting: system that collects and processes (analyzes, measures, and records) financial information about organization and reports it to decision makers. Internal decision makers: managers; external decision makers: parties outside firm (e. g. investors, bank"s loan officer) Managerial/management accounting: accounting for internal decision makers who must plan and manage daily operations (require continuous detailed performance reports)
