The "Who" in Accounting
This type of financial user has access to a businesses accounting information, which helps them make important decisions on how to run a company
Who are Internal Users
This type of business's income is reported as self-employed, with no legal distinction between the business as an economic unit and its owner. The kind of business most likely to fail, and the cheapest to start up
What is a Proprietorship
The activity of raising money or paying money back to creditors. Obtaining this money is usually done by bank loans or issuing shares
What is Financing
Although having no physical substance, these have much value and are non-current as they provide long-term economic benefit
What are Intangible Assets
This type of External Users use public accounting information to evaluate the risks of lending money or sending credit
What are Creditors
The owners of a Partnership might not have enough of this to start up their own business, so they go into business together, though it is still very complex and costly
What is Capital
These are payments made to shareholders based on how many shares they own. They are typically distributed in cash or additional shares
What are Dividends
Similar to your net worth, this term refers to a residual interest in an entity that remains after deducting its liabilities from its assets
What is Equity
Those who shareholders elect into their position, they do the hiring and strategy development within a corporation
Who are the Board of Directors
With shareholder-based ownership, a corporation generate more of this compared to other kinds of business, due to more favorable income tax treatment, an indefinite life, publicly traded shares
What is Revenue
This is an example of a short-term asset, used in day-to-day operations like office and cleaning items. These assets are not re-solf to customers
What are Supplies
This intangible asset arises when one company acquires another for more than the fair value of its net identifiable assets
What is Goodwill
A legally owned business that opperates in one country, though its parent company is based in a separate country
What is a Foreign Subsidiary
This form of accounting standards was developed for private corporations. It is less complex and more cost efficient compared to its counterpart
What are the Accounting Standards for Private Enterprises (ASPE)
This event takes place when a private company converts to a public company by offering for sale a portion of its ownership through newly issued shares, enabling public investors to purchase equity and allowing its stock to trade on a public exchange
What is IPO (Initial Public Offering)
A company's ability to pay interest as it comes due and to repay the face value of debt maturing leads to a higher level of this measurement. This ratio measures a company's ability to survive over the long term by having enough assets to settle its liabilities as they fall due
What is Solvency
A partner or investor in a company that invests capital into a business though does not participate in its day-to-day operations or decision making process
What is a Silent Partner
Publicly traded corporations in many countries outside the U.S. are required to prepare their financial statements using these international standards, allowing investors to compare performance across borders
What are the International Financial Reporting Standards (IFRS)
The buying and selling of assets such as bonds of another company that are bought with the intention of reselling them after a short period in order to earn income from fluctuations in their price
What are Trading Investments
The process of analyzing enormous amounts of data to find patterns and correlation, trends, and other valuable insights is known as this, with the end goal of drawing insightful and knowledgable conclusions from that information
What is Data Analytics