BU127 Chapter Notes - Chapter 1: International Financial Reporting Standards, Investment, Income Statement
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BU127 Full Course Notes
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If borrowed money from a local bank and other lenders, or creditors, and uses these funds to expand the business. Creditors lend money to a company for a specific length of time. Gain by charging interest on the money they lend. Individuals who buy small percentage of large corporations are called investors. Expect to receive a portion of what the company earns in the form of cash payments called dividends, and they hope to eventually sell their share of the company at a higher price than they paid. The exchanges of money between company and its lenders and owners are called financing activities. Company"s purchases or sales of property, such as equipment used in production, are called investing activities. Accounting is a system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. Developing accounting information for internal decision makers is called managerial or management accounting.
