ACCT 2001 Lecture : Accounting 2001 Lecture 1 And 2
Document Summary
Proprietorship: generally owned by one person: simple to establish, owner controlled, tax advantages, 2. Partnership: a business that has shared control with a partner(s: simple to establish, broader skills and resources, tax advantages, 3. Corporation: has a larger ownership and outreach than a partnership or proprietorship: easier to transfer ownership, easier to raise funds, no personal liability. Accounting: the information system that identifies, records, and communicates the economic events of an organization to interested users. Financial statements and how we communicate with users: account is an area we keep track on, fiscal period- whatever period we define it on (every week, month, year) Revenues: how much money we made: net income: revenue > expenses. Expenses: how much we lost: net loss: expenses > revenues. 2,860 dollars: dividends: subtract that from retained earnings. Any kind of loss or expense from the company: retained earnings are always four lines: starting at the first day, or month and ending at the fiscal period.
