ACG 201 Lecture Notes - Lecture 3: Legal Personality, Deferral, Sole Proprietorship
Document Summary
Sole proprietorship: business owned by one person; advantage of sole-proprietorship is how easy it is to form, business isn"t taxed owner is taxed, not legal entity partners can bring to the business. Partnership: shared owner control, business not taxed, but owner taxed, advantage of partnership over sole proprietorship is the broader skill set that multiple, not legal entity. Corporation: all types of owner control, business taxed and owner taxed, separate legal entity. Operating: sell products, buy supplies, conduct marketing. Investing activities: purchase factory, aquire land, buy equipment. Sec (securities and exchange committee): regulate the interstate sale of stocks and bonds, requires companies to submit audited annual nancial statements. Gapp(generally accepted accounting principals): set of standards and procedures that guide preparation of a nancial statements. Pcaob(public company accounting oversight board): empowered to approve auditing standards, created gaas. Gaas(generally accepted auditing standards): monitor the quality of nancial statements and audits. Balance sheet (point in time/ snapshot: assets=liabilities+ s/e.
