ACCTCY 2036- Midterm Exam Guide - Comprehensive Notes for the exam ( 14 pages long!)
Document Summary
Owner has all liability and puts business on individual tax return. More legalities - lawyer needs to draw up an agreement (more expensive) Owners are not held legally responsible for taxes (the corporation is a separate being) Can"t lose more than you invest in the corporation. High legal fees, income taxes are doubled (once for the corporation, taxed again when the owner wants to use it for themselves) Stock certi cate: legall document that indicates a share of the corporation"s ownership. Accounting: information system designed by an organization to capture (analyze, record, & summarize) the activities affecting its nancial condition and performance and then report the results to decision makers, inside & outside of the organization. Private accountant: work as an employee of the business. Public accountant: provides advice to a variety of businesses. Directors - govern - company board of directors (make sure managers make good decisions) Detailed nancial plans, continually updated reports on operation.
