Management and Organizational Studies 3370A/B Lecture Notes - Deferral, Sole Proprietorship, Deferred Income

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Maria Ferraro

Document Summary

Constituents of accounting: people who are interested in financial statements. Creditors: people who will lend you money (ex: banks) Investors: people who own a part of your business. *for sole proprietors, you must separate your personal accounting from the business"s accounting. *shareholders don"t have to pay for liabilities that the company may incur; limited. *only corporations can trade stocks on the market. *for public corporations, anyone can buy shares of a company whereas private restricts who can buy shares. *merchandising business: businesses who sell the products but don"t make them. *manufacturing business: purchase raw materials and huge investments on equipments, make them (can be told by the balance sheet; a lot of equipments and inventory) *service business: most non-profit organizations are service organizations. *every single transaction is either a financing, investing, or operating activities. *investment activities: what should i invest in for the long-term. It"s only an investment activity if it lasts in the long-term.