[ACG 2021] - Final Exam Guide - Everything you need to know! (49 pages long)
Document Summary
Definition of accounting: accounting- the information system that identifies, records, and communicates the economic events of an organization to interested users, users can be divided into 2 groups. Internal: external, purpose is to provide economic information as inputs for decision making by users of the information. Increased oversight by the board of directors must occur, including the (cid:271)oa(cid:396)d"s sele(cid:272)tio(cid:374) a(cid:374)d supe(cid:396)visio(cid:374) of the i(cid:374)depe(cid:374)de(cid:374)t audito(cid:396: solving an ethical dilemma, 1. Business activities: all businesses are involved in, financing. Investing: operating, the accounting information system keeps track of the results of each of these business activities, financing activities, 2 primary sources of outside funds are, 1. Borrowing money: amounts owed are called liabilities, party to whom amounts are owed are creditors, notes payable and bonds payable, different types of liabilities, 2. Issuing (selling) shares of stock for cash: payments to stockholders are called dividends.
