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Lecture

MGT120H5 Lecture Notes - Cash Flow Statement


Department
Management
Course Code
MGT120H5
Professor
Catherine Seguin

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MGT120 Lecture 1
UNIVERSAL EQUATION
Assets = Liabilities + Owners Equity
Things Owned = Creditors + Owners
Cash = Loans + Investments
used to buy: as the business operates
Equipment + Revenue
Inventory - Expenses
Other assets
* The things in the columns all relate to each other
assets are things owned and cash
liabilities consists of the loans which are received from creditors
owners equity consists of the owners investments
Accounting Info in Decision Making
A Business :
1. Owners provide the funds
Creditors may also provide funds
2. These funds are used by mangers of company to buy
Equipment
Inventory
Other assets (ex. Permit)
3. Managers develop plans and set goals
For example :To make profit –sell high quality product at low price
any quesions? sa.junejo@gmail.com!
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