AFM101 Chapter Notes - Chapter 1: Financial Statement, Share Capital, The Ghan

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Donna Psutka

Document Summary

Owner-manager: the sole owner and the manager of the company. Creditors: local banks and other lenders that lend money to companies. Lend for specific length of time and gain interest. Financing activities: exchange of money between lenders and owners. Investors: individuals who buy small %-ages of large corporations. Make purchases hoping to gain in 2 ways: receive dividends (a portion of what company earns in cash payments, eventually sell their share at a higher price. Investing activities: buying and selling capital equipment and other assets. Suppliers: companies go to these people for materials needed to produce their good or service. Customers: products are sold and distributed to these people. Accounting: a system that collects and processes (analyzes, measures, and records) financial info about an organization and reports that info to decision makers. Internal decision makers: managers, people within the company: need continuous detailed info to plan and manage day-to-day operations, managerial/management accounting: developing accounting info for internal decision makers.