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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
