大学会计英语课件陈庆柏 主编978 7 81134 917 7unit 4.pptVIP

Potential Creditors of a Business Individuals or companies who supply goods or services to a business on credit will often require assurances about the ability of a business to pay its debts. They will therefore often wish to consult recent Balance Sheets before entering into a contract for the supply of goods or services; they will want to ensure as far as possible that the business they supply will be able to pay the debt at a later date. 4.3 Chief Users of Accounting Information Existing Creditors They will be interested in the financial state of a customer, particularly in their ability to pay any existing debts outstanding. The existing creditor will also be looking for continuing ability to pay debts for any future supplies of goods or services. 4.3 Chief Users of Accounting Information Banks and Other Institutions Those who are asked by a business to provide loans or overdraft facilities will use the financial statements produced by an organization as a basis for making their decisions. The accounting statements for a number of years will be analysed in order to gauge the ability of the business to repay the loan or overdraft facility. 4.3 Chief Users of Accounting Information Why do the owners and directors require accounting information? Why are potential creditors and existing creditors are concerned about a business’ ability to pay its debts? Questions for Unit 4 Define the following terms overdraft facilities financial year contract sole trader limited company partnership the Trading and Profit and Loss Account Questions for Unit 4 Paraphrase the following esp. the underlined parts Paid-in Capital of a business typically comes from its owners who invest in it in exchange for stock certificates, which are issued as evidence of stockholder rights. Capital stock can be categorized into two principal classes: common stock and preferred stock. Some corporations have several categories of each, all with a variety of different attributes. Questions for