COB 218 Chapter Notes - Chapter 13: General Ledger, Financial Statement, Trial Balance
Document Summary
Investors: provide financial resources in exchange for ownership interests in businesses. Owners expect businesses to return to them a share of the business, including a portion of earned income. Instead of a share of the business, creditors expect the businesses to repay borrowed resources plus a specified fee called interest. Stakeholders: the many users of accounting information, including resource providers, financial analysts, brokers, attorneys, government regulators, and news reporters. Financial accounting standards board (fasb): a privately funded organization with the primary authority for establishing accounting standards in the united states. Generally accepted accounting principles (gaap): the measurement rules established by the. Reporting entities: the people or businesses accountants report on. Common stock: the specific commitments made to the investors that are descried in certificates. Sto(cid:272)kholde(cid:396)"s e(cid:395)uit(cid:455): the (cid:271)usi(cid:374)ess"s (cid:272)o(cid:373)(cid:373)it(cid:373)e(cid:374)t to the sto(cid:272)kholde(cid:396)s. Dividends: the distribution of assets generated through earnings. Instead of paying dividends, a business may retain the assets it generates through operations.
