BUS 201 Chapter Notes - Chapter 1: Limited Liability, Cash Cash, Financial Statement

• School: USF
• Department: Business Administration
• Course: BUS 201
• Professor: Kathryn Troxel

Document Summary

4 basic financial statements: income statement, statement of retained earnings, balance sheet, statement of cash flows. All financial statements reported to various groups which will help them determine if they should invest or loan money to this business. Why is accounting the language of business: accounting provides financial statements that reflect if the business is making / losing money including performance reviews so changes can be made within the company as well as from outsiders. Investors / creditors: whether or not to invest; approx. how long it will take to get money back: egulato(cid:396)(cid:455) (cid:271)odies: i s a(cid:374)d go(cid:448)(cid:859)t fo(cid:396) ta(cid:454)es, non-p(cid:396)ofits: i s a(cid:374)d go(cid:448)(cid:859)t fo(cid:396) ta(cid:454)es (cid:894)usuall(cid:455) (cid:374)o(cid:374)e(cid:895) Financial accounting: statements for decision makers outside of the entity (investors, creditors, etc) Managerial accounting: statements for decision-makers within the entity (budges, forecasts, etc) Proprietorship: one owner, personally liable for any debt, usually very small businesses, attorneys, artists, accountants, etc.