Chapter 1 Flashcards
Investors
They can be shareholders, managers or someone who is interested in long-term debt capital. They care about return rate and risk. Shareholders are also owners.
Suppliers
They are interested in company over shorter period.
Government
They care about income tax and regulations.
Stakeholders
Financial statements are prepared for them. To je sve ove sto smo nabrojali.
Describe IASB
International Accounting Standard Board
It is mainly concerned with lenders and investors.
Its independent and has total autonomy in the setting of international standards. It uses a mixture of UK and US english.
Objectives of IASB
1.da napravi standarde
2.da naredi da se ti standardi primene
3.da uzme u obzir sve vrste kompanija
4.da promovise upotrebu IFRS
Finance
raising money, investing in financial assets
Financial Management
using money inside the company
Financial accounting
reporting on the results of using that money
Sole trader
- has unlimited liability
2.pays personal income tax on the profits
Partnership
1.they are legally responsible for their assets and liabilities
2.They pay tax on the share of the profits
Not fully seperated from the company
Bank can ask them to pay the debt with their personal belonggings.
Limited liability
Owners are not putting their personal belongings in risk, only company’s
Public markets which are listed
Public companies that are lsisted in stock exchange. Što znači everyone can buy their shares, their shares are traded.
Equity investement
Return type=dividends and capital appreciation
