[ACG 2021] - Final Exam Guide - Ultimate 42 pages long Study Guide!
Document Summary
Why accounting is the language of business: accounting- systematic recording of financial transactions pertaining to a business using a standard of rules, an information system. Language of business: you can derive so much information of a company by their financial statements. Can be used to invest in companies because it helps predict: the nature of accounting is to explain the business, people make decision>transactions happen>companies report results. To know how much they can earn when they invest and to know when they are going to get paid. Stock price takes a dive when the accounting irregularities: regulatory bodies. Irs- requires businesses and others to pay taxes. Sec-makes companies provide financial reports: nonprofit org, Shouldn"t include personal debt (mortgage: partnership. Income and losses flow through" to the partners. The business is liable for company debt. Llc income flows through" members like they were partners: corporation. No personal liability legally distinct from owner.
