BUS 251 Midterm: BUS 251, Term Test 1

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

Document Summary

Chapter 1: introduction to financial accounting 2. Chapter 5: statement of cash flows 23. Chapter 6: cash and accounts receivable 30. Financial statement users can be investors, creditors, and management. Businesses have annual report: shows results of company"s activities in a year. Financial statement users: internal users: management, external users: shareholders, potential investors, taxing authorities, labor unions, financial institutionsetc. Least expensive to establish and maintain: partnership. No legal entity: personal assets are at risk. Cash inflows: borrow money or issue shares. Cash outflows: repay loans or paying dividends: investing activities. Buying and selling property, plant, and equipment, or buying and selling shares of other businesses. Cash inflow: sale of property, plant, and equipment (ppe) or sale of shares of other companies. Cash outflow: purchase of ppe or purchase shares of other companies: operating activities. Ex: sales revenues, costs, other income, interest, income tax: statement of changes in equity.