BU127 Lecture Notes - Lecture 1: Financial Statement, Double Taxation, Retained Earnings
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BU127 Full Course Notes
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Class 1 financial statements and business decisions. Managers: purchase materials and labour, manufacture product. Operations: collect cash from customers and pay creditors, sell products to customers. Creditors: lend money to ppl who need it; gain by charging interest. Business owners (shareholders/investors) look for 2 sources of gain: Copyright 2014 mcgraw-hill ryerson limited: dividends a portio(cid:374) of the co(cid:373)pa(cid:374)y"s ear(cid:374)i(cid:374)gs in cash, sell ownership in future for more than they paid. Manufacturers either make the parts needed or buy from supplier. Collect and process financial information report info. to decision makers. Financial accounting reports managerial accounting reports (periodic financial statements) (detailed plans & performance reports) Financial statements prepared using gaap (generally accepted accounting princples) Companies that trade their securities (debt/equity) in a public market not required to use ifrs. 4 basic financial statements: ifrs: statement of financial position assets, liabilities, equity, statement of comprehensive income, statement of changes in equity, statement of cash flows.
