BUAD 280 Lecture Notes - Lecture 1: Cash Cash, Accounts Payable, Deferral
28 Sep 2016
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Investors own shares you get future cash flow share price increases company wealth grows can then sell share at a profit. To find future stock price future products, previous trends, management, Bankruptcy when it goes out of business you get the % of remaining capital. Entity anything that can be used to find information. End user/investor wants entities to give info. System accounting (recording response) financial accountants (prepare information for users outside of entity) management accountant (prepare information for users inside entity) Audit (verifies the reports prepared by the accountants) No stock issued founders keep all cash flow. Sell stock get cash invest in business generate more cash flow. Companies are required to disclose financial information when they are publicly traded. Gaap (general accepted accounting principles): rule-based sets rules for disclosure domestically. The primary method of communication with external users is the annual report.
