Management and Organizational Studies 1023A/B Study Guide - Commercial Paper, Balance Sheet, Deferral

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Accounting is the information system that identifies and records the economic events of an organization, and then communicates them to a wide variety of users. There are two types of users: internal users and external users. External users: there are several different types of external users in accounting: investors (make decisions to buy, sell, or hold ownership interest), creditors (suppliers and bankers need to evaluate risks of granting or loaning money). There are three forms of business organizations: proprietorship- a business owned by one person. Simple to set up and gives you control over the business. Usually a small amount of capital is needed to start the business. The owner receives profits, suffers losses and is 100% liable. Small service businesses such as hair salons, plumbers and mechanics are examples. Also farms and small retail stores: partnership- a business owned by more than one person.