MGAB01H3 Chapter 1: Chapter 1 Study Guide
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MGAB01H3 Full Course Notes
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Document Summary
Chapter 1: the purpose and use of financial statements. Accounting the information system that identifies and records the economic events of an organization and then communicates them to the user (also referred to as the language of business) Info investors and creditor are the main external users. N held accountable for all things in the business. N no legal distinction between the business as an economic unit and the owner. N &8:,14720/-0. ,:80430507843/40839,;0,/06:,900. 4342. 7084:7. 0847,5,79307-7ngs a special or unique skill to the business. N many businesses start as proprietorships/partnership and eventually incorporate. N shareholders only risk losing the amount they have invested in the . 425,38 shares only. N proprietors/partners pay personal income tax on their profits while corp. pay income taxes as separate entities. N private corp. do not issue publicly traded shares. Primary ways of raising outside funds for corp. (1) borrowing money (2) issuing shares for cash.
