AFM123 Lecture : ARBUS102 - Pt.1 Mangement The course ARBUS 102 is split into two very distinct sections; accounting and management. This study contains all the lecture notes and powerpoint slides. As well, the entire textbook 'Accounting Information for Managers' is summ

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lemonprairie-dog918

16 Oct 2011

School

University of Waterloo

Department

Accounting & Financial Management

Course

AFM123

Professor

Seth Bouwers

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Document Summary

Three main business activities: operating: day-to-day events that occur when running a business (example: Accounting is the process of capturing and reporting the results of a business"s operating, financing, and investing activities. Forms of business ownership: sole proprietorship, partnership, and corporations. It communicates what the business owns, owes and what is left over for shareholders. Dividends are reported on this statement and not on the income statement for they are not an expense but rather the distribution of profits to shareholders. Beginning retained earning + net income dividends declared = Ending retained earnings: statement of cash flows: summarizes the business"s operating, financing, and investing activities that caused its cash balance to change over a particular period of time. The end of year cash balance is equal to the amount reported as cash on the balance sheet. Relationship among the statements: net income flows from the income statements of the statement of retained.

Related Questions

Investing activities: a. involve day to day events like selling goods and services, which occur when running a business. b. involve the buying or selling of land, buildings, equipment, and other longer-term investments. c. only involve financial exchanges. d. All of these.

Spencer Software Company has assets of $850,000 and liabilities of $460,000.

a.	Prepare the owners' equity section of the company's balance sheet under each of the following independent assumptions:
	1.	The business is organized as a sole proprietorship, owned by Johanna Spencer.
	2.	The business is organized as a partnership, owned by Johanna Spencer and Mikki Yato. Spencerâs equity amounts to $240,000.
	3.	The business is a corporation with 27 stockholders, each of whom originally invested $10,000 in exchange for shares of the companyâs capital stock. The remainder of the stockholdersâ equity has resulted from profitable operation of the business.

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Introduction

Now that youâve created the basis for your fictitious restaurant, you can explore more topics that will allow you to record business transactions for your enterprise.

Part 1

Your first step in the project is to write a one-page paper to explain the basis of your business. Which business form (sole proprietorship, partnership, corporation) did you choose and why? Explain the three basic financial statements that your business will rely on to make decisions now that it is up and running. Which financial statement do you think you would rely on the most? Why?

AFM123 Lecture : ARBUS102 - Pt.1 Mangement The course ARBUS 102 is split into two very distinct sections; accounting and management. This study contains all the lecture notes and powerpoint slides. As well, the entire textbook 'Accounting Information for Managers' is summ

Document Summary

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