BUS 251 Chapter Notes - Chapter 4: Canadian Dollar, Subledger, Interest

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

Document Summary

Chapter 4 revenue recognition and statement of earnings. Corporate managers engage in three general types of activities: financing, investing, and operating. We will focus on operating: the ones that generate most of the revenue. Operating activities include all the normal, day-to-day activities of every business that almost always involve cash. The typical business operations involves an outflow of cash that is followed by an inflow of cash, a process commonly called cash-to-cash cycle. The initial amount of cash in a company comes from the original investment by shareholders and from any loans that the company may have received as start-up financing. Before the company acquires the inventory that it will sell to customers or will use to provide its services, it must undertake the investing activities of acquiring property, plant, and equipment. Company hires labour and purchases the first shipments of inventory (or signs contracts to acquire them). All activities that promote and sell the product.