[BSM 100] - Final Exam Guide - Comprehensive Notes for the exam (49 pages long!)

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 100
• Professor: Ranjita Singh

Document Summary

Financial accounting: the branch of accounting that addresses the needs of external stakeholders; includes financial statements to provide broad information. Competitors: when they go to new geographical areas they need the records. Financial accounting includes 3 basic financial statements: Corporations w/ publicly held stock must publish annual reports w/ all statements. Shows financial position of the company at a point in time. The balance sheet shows the result - what the company owns (assets), what it owes (liabilities), and what is left over for the shareholders" equity. Short term assets + long term assets1 = liabilities2 + shareholders equity3. Account receivable (sold it but not yet been paid; on credit) Things of value easily turned to cash. Things of lasting value the firm uses. Debts the firm will pay w/in the year. Debts that the firm will pay in more than a year. 2 sources of funds to buy or sell assets.