Users and uses of financial information. Range of areas of the accounting and finance. Financial activities and their management. Securities and stock exchanges. Parts of the balance sheet: assets and liabilities. Main external sources of finance.
Owners examine the financial information to determine whether or not their businesses are being properly managed and if their investments are worthwhile. It depends on the fact if the company is doing well or badly. If the company wants to turn some of its profit into capital or capitalize some of its profit it can issue new shares at no cost to the existing shareholders. Any person or company starting or doing some business has three questions to answer all connected to finance. Equity is the value of its property (also used as security for the financing) after deducting all the charges to which that property mao be 1iabla.
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