Accounting 1 Flaschars

Investors

• decide whether to invest in stock 

creditors

• decide whether to lend money  

customers

• decide whether to purchase products 

suppliers

decide the customer's ability to pay for supplies

external users

financial information users outside the organization, such as investors and creditors, who evaluate the company's performance and financial health. (financial accounting)

internal users

financial information users within the organization, such as managers and employees, who use the data to make operational decisions. (managment)

financing activitues

• transactions the companies have with investors and creditors related to raising capital and repaying debts.

corperation

• apple, Microsoft, Adidas 

partnership

•  a business owned by two or more persons 

assets

liabilities+ stockholders equity

liabilities

financial obligations owed to creditors.

stockholders equity

owners claim to resources

revenue

the income generated from normal business operations. (sells prodects or services)

expenses

process of earning revenue, including costs of goods sold, operating expenses, (the cost of providing goods and services )

net income

the profit remaining after all expenses have been deducted from revenue. (earning of profits)

dividends

cash payments to stockholders (dividends are not expenses)

financial statements

• periodic reports published by the company to provide info to external users  , including the balance sheet, income statement, and cash flow statement.

primary statment

the main financial reports used to assess a company's financial performance, including the income statement, balance sheet, and cash flow statement.

service revenue

total expence = net income