BUS 202 Study Guide - Quiz Guide: Deferral, Accounts Payable, Retained Earnings
Document Summary
Business activities: (review the list on page 628): operating, those activities to conduct business create revenues and expenses a. i. Cash paid to suppliers (outflow: also, interest payments on debt and interest income on investments. Investing (purchase of resources a company needs to operate: property, plant, and equipment the business needs to operate a. i. Outflows result when purchased (cash paid to purchase office building or equipment) Inflows result when sold a. ii: other investments (short term investments to park cash, financing (activities that raise money for the business, borrow money from a bank (note payable) Inflows result when the money is borrowed a. i. a. ii. Outflows are created when the money is paid back: borrow money through bonds (bonds payable) Inflows result when the money is borrowed issuing a bond b. i. b. ii. Outflows are created when the money is paid back redeeming a bond c. Creates cash inflows: pay dividends to stockholders d. i.
