MGAB01H3 Chapter 1: Chapter 1 notes
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MGAB01H3 Full Course Notes
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Chapter 1 the purpose and use of financial statements notes. N many businesses start out as proprietorship or partnership and eventually incorporate. N while cash can be used for, or result from, an investing activity, it is not itself an investing activity. Summary of business activities: financing activities include borrowing cash from lenders by issuing debt, or conversely, using cash to repay debt. Cash can also be raised from shareholders by issuing shares or paid to shareholders by distributing dividends. N annual report a report prepared by management that presents financial and nonfinancial information about the company www. notesolution. com. The purpose of accounting is to provide useful information for decision-making. There are 2 types of user groups who use accounting information: internal and external users. Internal users work for business and need accounting information to plan, organize, and run operations. The primary external users are investors and creditors.
