ACTG 1P91 Study Guide - Spring 2018, Comprehensive Midterm Notes - United States Congress, Time, Standard Accounting Practice
12 Oct 2018
School
Department
Course
Professor
ACTG 1P91
MIDTERM EXAM
STUDY GUIDE
Fall 2018
ACTG1P91
May 3, 2018
Business Decisions and Financial Accounting
Organizational Forms
- Sole Proprietorship
1. Owned by one person
2. Easy to set up
3. Owner is liable for debts
- Partnership
1. Owned by more than one person
2. All parties/partners are liable for business debt
- Corporation
1. Separate legal entity
2. Subject to regulations
3. Oes ad shaeholdes ae’t pesoall liale
Accounting for Business Decisions
- Accounting
1. sste of aalzig, eodig ad suaizig the esults of a usiess’s
activities and then reporting the results to decision makers.
- Managerial accounting reports
1. used inside the company.
2. They include detailed financial plans and reports about the operating
performance of the organization.
- Financial accounting reports
1. used outside the company by creditors, investors and others.
2. These reports are the financial statements.
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ACTG1P91
May 3, 2018
The Basic Accounting
Equation
- Asset
1. anything thing monetary that you have control over i.e. house, car and etc
- Liabilities
1. anything bought with borrowed money because you are liable to pay back
i.e. mortgage
- Shareholder equity
1. Oes’ lais o the usiess.
i) Contributed Capital is the amount owners contributed directly to
the company in exchange for its shares.
ii) Retained Earnings is the amount the company has earned through
profitable business operations.
- Revenue
1. Amount earned by selling goods or services to customers
- Expenses
1. Costs of doing business that are necessary to earn revenue
find more resources at oneclass.com
find more resources at oneclass.com
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ACTG 1P91 Full Course Notes
Verified Note
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Document Summary
Sole proprietorship: owned by one person, easy to set up, owner is liable for debts. Partnership: owned by more than one person, all parties/partners are liable for business debt. Corporation: separate legal entity, subject to regulations, o(cid:449)(cid:374)e(cid:396)s a(cid:374)d sha(cid:396)eholde(cid:396)s a(cid:396)e(cid:374)"t pe(cid:396)so(cid:374)all(cid:455) lia(cid:271)le. Accounting: s(cid:455)ste(cid:373) of a(cid:374)al(cid:455)zi(cid:374)g, (cid:396)e(cid:272)o(cid:396)di(cid:374)g a(cid:374)d su(cid:373)(cid:373)a(cid:396)izi(cid:374)g the (cid:396)esults of a (cid:271)usi(cid:374)ess"s activities and then reporting the results to decision makers. Managerial accounting reports: used inside the company, they include detailed financial plans and reports about the operating performance of the organization. Financial accounting reports: used outside the company by creditors, investors and others, these reports are the financial statements. Asset: anything thing monetary that you have control over i. e. house, car and etc. Liabilities: anything bought with borrowed money because you are liable to pay back i. e. mortgage. Shareholder equity: o(cid:449)(cid:374)e(cid:396)s" (cid:272)lai(cid:373)s o(cid:374) the (cid:271)usi(cid:374)ess. Contributed capital is the amount owners contributed directly to the company in exchange for its shares.
