[BUS 251] - Final Exam Guide - Everything you need to know! (22 pages long)

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Financial accounting: capturing, analyzing and reporting transaction information to financial statement users. Statement users include: investors, creditors (person who has lent $), management. Annual report: reports the results of company"s activities during the year (allows investors, shareholders, bankers to determine value of business) Public company with thousands of shareholders (shareholders own the company) Operating activities (everyday activities) > financing activities (raising $ activities) > investing activities (purchasing activities) Financing activities: a company"s financing comes from two sources, investors and creditors. Cash outflow: repaying loans and paying dividends on shares. Investing activities include buying and selling of property, plants and equipment (ppe) or shares. Cash inflow: sale proceeds from ppe and shares of other companies. Cash outflow: purchase of ppe and shares of other companies. Statement of income (revenues expenses = profit) Statement of changes in equity ($ growth, measured in share capital + retained earnings)