ARBUS102 Chapter Notes - Chapter 2: Promissory Note, Startup Company, Cash Cash
17 Jan 2016
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Chapter 2 reporting investing and financing results on the balance sheet. Assets: resources presently owned by a business that generate by a. Liabilities: amounts presently owed by a business. Shareholders equity: the amount invested and reinvested in a. A key activity for any start-up company is to obtain financing. Share certificates is given to the owners as evidence of their ownership. Promissory note legal document for repaying a loan. 3 features that will be important for understanding accounting works: 1. Share certificates, promissory notes, cheques, and invoices indicate the nature of the underlying business activity: 2. The company always receives something and gives something. A business enters into an exchange either to earn a profit immediately or to obtain resources that will allow it to earn a profit later. (to create value through exchange: 3. Each exchange is analyzed to determine a dollar amount that represents the value of items given and received.
