BU127 Chapter Notes - Chapter 1: Retained Earnings, Financial Statement, Income Statement

• School: WLU
• Department: Business
• Course: BU127
• Professor: James Moore

Document Summary

Bu-(cid:1005)(cid:1006)7 chapter (cid:1005): fi(cid:374)a(cid:374)cial state(cid:373)e(cid:374)ts a(cid:374)d busi(cid:374)ess decisio(cid:374)s. Creditors: people you borrow money from. Investors: people who buy parts of your company, they hope to receive dividends or that the stock will rise in value. Suppliers: people you buy ingredients and equipment from. Customers: people that you sell to. Collects and processes financial information and reports it to decision makers. Managerial accounting: accounting information for internal decision makers. Financial accounting: accounting information for external decision makers. Reports the financial position of an accounting entity (the organization) at one time. Structure of the statement of financial position title: name of the organization, title of the statement, specific date of the statement, unit of measure. Investment of cash and other assets by owners: retained earnings. Amount of earnings reinvested into the business: other components. Changes in the values of specific assets and liabilities. Repo(cid:396)ts the (cid:272)ha(cid:374)ge i(cid:374) sha(cid:396)eholde(cid:396)"s e(cid:395)uity du(cid:396)i(cid:374)g a pe(cid:396)iod f(cid:396)o(cid:373) (cid:271)usi(cid:374)ess a(cid:272)tivities, othe(cid:396) tha(cid:374) investments by shareholders.