[MGCR 211] - Midterm Exam Guide - Ultimate 37 pages long Study Guide!
Document Summary
Accounting is to think and is an information system that: identifies, records and measures economic events, processes that information into reports, communicates the results to decision makers. 6 types of accounting: financial accounting: process of producing information for external use, usually in the form of financial statements. Changes in financial position techniques used for litigation or disputes: management accounting: produces information primarily for internal use. It(cid:495)s financial position activities on its ecological and social environment. performance. Entity: an organization created by one or more natural persons to carry on a trade or business. There are two types; profit and non-profit seeking. Profit seeking: work to maximize its own value, aim to earn profit through its operations, pay taxes. Non-profit seeking: work for the welfare of society, do not seek any profit and reinvest surpluses earned back into the business. External users of financial info: regulatory authorities, creditors, tax authorities, customers, investors. Internal users of financial info: management, owners, employees.
