BCOR 1015 Study Guide - Midterm Guide: Retained Earnings, Insider Trading, Secondary Market
Document Summary
A company would need funds for-(ppe) property, place and equipment anything with a strategic investment. Also, if they buy a company or need to take out a big loan. Debt financing affects company by leverage, more risk. Equity makes dilution bigger, because of the sale of stock, Financial accounting ensure csr because it makes sure no one is embellishing the companies money and regulates business. Keeps track of the companies spending and where their money is going. Financial accounting has gaap incorporated with it and they regulate themselves. Csr is another system to keep the firm ethical. You take into account stakeholders, so when investers look at a company they know the info is accuracted and truthful so they can make informed decisions. Based on current and future info they are given. financial info. Assets=owners equity + liabilities, keeps the companies balance sheet balances, keeps check of money. Both sides of the equation must be balanced.
