ITM 102 Study Guide - Final Guide: Cash Flow Statement, Retained Earnings, Standard Accounting Practice

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 102
• Professor: Else Grech

Document Summary

Despite the close kept separate. (aka: economic entity concept- the assumption that a single identifiable unit must be accounted for in all situations) canada revenue agency does not recognize the distinction between an individuals person and business affairs. That is, a sole proprietorship is not a taxable entity; any income earned by the business is taxed on the tax return of the individual. owner. Very often the business is owned and operated by the same person. relationship between the owner and the business, the affairs of the two must be. A business owned by two or more people. Although a partnership may involve just two owners, some have thousands of partners. Public accounting firms, law firms, and other service companies are often organized as partnerships. Like a sole proprietorship, a partnership is not a taxable entity, the individual partners pay taxes on their proportionate shares if the income of the business.