ACCT 2220- Midterm Exam Guide - Comprehensive Notes for the exam ( 42 pages long!)
11 Oct 2017
School
Department
Course
Professor
Document Summary
Users and uses of accounting: accounting identifies and records the economic events of an organization and communicates to interested users, there are two broad categories of users, internal users, external users. Internal users: managers, employees, and others 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. Forms of business organizations: corporations: separate legal entity owned by shareholders (owners of shares) Indefinite life: owners enjoy limited liability, may be public or private, depends on whether shares are publicly traded. Three types of business activities: all companies are involved in all three activities, financing, investing, operating. Financing activities: obtaining (and repaying) funds to finance the operations of the business, borrowing money or repaying loans (debt, selling or repurchasing shares (equity, forms of debt, bank indebtedness, bank loans, noncurrent debt such as mortgages, bonds, leases.
