Management and Organizational Studies 1023A/B Study Guide - Profit Center, Deferred Income, Procter & Gamble

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: All

Document Summary

Constituents of accounting: people who are interested in financial statements. Creditors: people who will lend you money (ex: banks) Investors: people who own a part of your business. *for sole proprietors, you must separate your personal accounting from the business"s accounting. *shareholders don"t have to pay for liabilities that the company may incur. *for public corporations, anyone can buy shares of a company whereas private restricts who can buy shares. *merchandising business: businesses who sell the products but don"t make them. *service business: most non-profit organizations are service organizations. *every single transaction is either a financing, investing, or operating activities. *investment activities: what should i invest in for the long-term. It"s only an investment activity if it lasts in the long-term. Short-term investments such as supplies for an office is not an investment activity. *operating activity: includes the day-to-day expenses incurred from running the business.