ACCT 1220 Final: ACCT 1220 Final Exam Notes Chapters 1-13
22 Mar 2017
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Use and users of accounting: accounting identifies and records the economic events of an organization and communicates events of an organization and communicated to integrated users, there are two broad categories of users. Internal users: work for the company, managers, employees and other who plan, organize and run the company, external users, do not work for the company. Investors, lenders and other creditors: customers, employees, labour unions, taxing authorities and regulators. Proprietorship: owned by one person (proprietor, simple to set up, owner has control over business, limited life, unlimited liability. Partnership: similar to proprietorship except owned by more than one person, formalized in a written agreement, limited life, each partner has unlimited liability. Generally accepted accounting principles (gaap: rules and practices for the preparation of financial statements, different for publicly-traded and private corporations, publicly-traded corporations use international financial reporting standards (ifrs, private corporations may use ifrs or accounting standards for private.
