ACCT 001 Lecture Notes - Lecture 9: Financial Statement, Share Capital, Accounting Equation
10 Jul 2020
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Document Summary
Accounting identifies and records the economic events of an organization and communicates to interested users; which consists of two categories. Internal users: managers, employees, and others who plan, organize, and run the company. External users: people who don"t work for the company like investors, lenders, creditors, customers, employees, labour unions, taxing authorities and regulators. For accounting information to have value, preparers must have high ethical standards: Accountants, other professionals, and most companies have rules or codes of conduct to guide ethical behavior (rules of conduct). Proprietorship: a type of organization that is owned by one person who has control over their business, simple to set up and unlimited liability. Partnership: an organization that is owned by more then one person which is formalized in a written agreement and each partner has unlimited liability. Corporations: an organization that separates legal entity owned by shareholders, which can be public or private.
