BUS 201 Study Guide - Quiz Guide: Accounts Payable, Retained Earnings, Promissory Note
Document Summary
Forms of business organizations: sole proprietorship: simple to establish, owner controlled, tax advantages, partnership: , shared control, broader skills and resources, tax advantages, corporation: easier to transfer ownership, easier to raise funds, no personal liability. Internal users of financial information: marketing, management, human resources, finance. External users of financial information: investors, creditors, government agencies (sec, irs) Business activities: financing - external activities that allow firm to raise capital and repay investors. Borrowing money (debt financing: liabilities: amount owed, creditors: party to whom amounts are owed. Issuing (selling) shares of stock for cash: dividends: payments to stockholders, investing - purchase of resources a company needs to operate. Computers, delivery trucks, furniture, buildings (property, plant, equipment) Assets: resources owned by a business: operating - once a business has the assets it needs, it can begin its operations. Revenues: amounts earned from the sale of products. Accounts receivable: right to receive money from customer as result of a sale.
