Business Administration 2257 Lecture Notes - Lecture 2: Fiscal Year, Accounts Receivable, Cash Cash

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: T B A

Document Summary

Internal users work for the company unlike external users. Examples of internal users include finance directors, marketing managers, production supervisors, etc. External users, however, are comprised of investors, lenders such as bankers, and suppliers: advantages and disadvantages of a) proprietorships and partnerships b) corporations, proprietor ships. Pros: small amount of capital is needed to start in business (proprietorship, more people bring unique skills and the business to resources (partnership, corporations. Cons: unlimited liability (the owner"s or the partners" personal assets are on the line, no benefits, high income tax. Life of company is limited to the life of the owner(s) The fiscal year of companies doesn"t always end on dec. 31st because many companies choose to end their accounting year when inventory or operations are low. It is very insightful for external users to determine whether they"ll invest or lend money to the company. Liabilities: common shares, retained earnings, accounts receivable, buildings, cash, equipment, accounts payable, bank loan payable.