ACCG100 Lecture Notes - Lecture 1: Sole Proprietorship, Financial Statement, Management Accounting

• School: Macquarie University
• Department: Accounting and Corporate Governance
• Course: ACCG100
• Professor: Colly He

Document Summary

Process of identifying, measuring, recording and communicating economic transactions/events that happen in the course of business operations. This process provides decision makers with the financial information to make smart choices! Internal focus accountant communicates with own management rather not clients. Accountant provides info. for internal decision making e. g budgeting, strategy. External focus accountant communicates directly with clients. Provides service such as financial statements, end of financial year tax lodgements. Practice highly regulated, requires you to be very familiar with the rules & regulations. Benefits no taxes on profits as long as you are keeping them within the business e. g reinvesting. Disadvantage the business is attached to the owners, they have personal liability. Example lawyer firms, pwc (most professional establishments) Benefits same as above, no tax on retained profits. (detailed example if you earn. 100% in profits and distribute 40% to shareholders while keeping 60% retained with the business.