BU127 Lecture 1: Chapter 1
6
BU127 Full Course Notes
Verified Note
6 documents
Document Summary
Managers: purchase materials and labour, manufacture product. Operations: sell products to customers, collect cash from customers and pay creditors. Business owners (called investors or shareholders) look for two sources of possible gain: Creditors lend money to a company for a specific length of time and gain by charging interest on the money loaned. Manufacturers either make the parts needed to produce its products or buy the parts from suppliers. The accounting system: managers (internal decision makers) financial information, collects and processes. An organized format used by companies to accumulate the dollar effects of transactions. These relationships are usually described by an equation that tells you how the elements fit together: why is each element important to managers", owners" or creditors" decisions? (how important is the information to decision makers?) Financial statements are often referred to as having been prepared using gaap (generally accepted. Aspe: accounting standards for private enterprise (acsb) (most will chose aspe because it is less complex)
