ADMS 1500 Study Guide - Midterm Guide: Gross Margin, Retained Earnings, Dividend Payout Ratio
9 Feb 2017
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Document Summary
Who needs to know about accounting: the answer is that about every manager needs it. How accounting can be used to keep score: when a company publishes its income statement and its balance sheet. How accounting can be used for attention directing: accounting can allow on what managers should be paying attention to. How accounting can be used to support decisions: support decisions making or problem solving. What are forms of business organizations: sole proprietorship. Individual trading trade in their own name if it fails personal assets will be lost: partnership. Often two or more people may agree to work together in partnership everybody profits equally. Con: if it fails, the assets will be used to cover creditors: private limited liability company. Public limited liability company is one where the trading of shares is not restricted shares ae listed in public stock exchanges anyone who want to can buy them or sell them at the going market price.
