ACCT207 Chapter Notes - Chapter 2: Initial Public Offering, Accounts Payable, Current Asset
28 Mar 2016
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Chapter 2: investing and financing decisions and the accounting system. How did chipotle grow so fast? (1) mcdonald"s became the majority stockholder (2) chipotle went public : in its initial public offering (ipo), it issued stock to the public for the first time (cid:2) What identifies a restaurant as fast-casual: customers still order at the register as in a fast-food restaurant, but there are usually no drive-thrus and the food is made to order and served in modern and upscale surroundings. Financing activities: borrowing funds from creditors or selling stock to investors to provide the cash necessary to acquire the assets (cid:2) (cid:2) Primary objective of financial reporting to external users: to provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity.
