ACCT 217 Lecture Notes - Lecture 1: Limited Liability, Legal Personality, Byrsonima Crassifolia

• School: University of Calgary
• Department: Accounting
• Course: ACCT 217
• Professor: Darrin Ambrose

Document Summary

Internal users of accounting information are all employees who work for the organization to plan and organize. These users include hr managers, nance and marketing directors, etc. External users of accounting information include investors, lenders, and creditors. In order for nancial information to have value to its users, it must be prepared by individuals with high standards of ethical behaviour. There are three common forms of business organizations; A business owned by one person with unlimited liability- there is no legal distinction between the business as an economic unit and the owner. The business pro ts are reported as self- employment income and taxed on the owner"s personal income tax return. Pros: requires a small amount of start up money. Examples: hair salons, plumbers, mechanics, farms, small retail stores. A business owned by multiple people with unlimited liability. Partnerships are normally formalized in a written agreement. Pros: more individuals involved bring more resources and spread out liability.