COMM 111 Chapter Notes - Chapter 1: Faithful Representation, Management Accounting, Income Statement
Document Summary
Explain why accounting is the language of business. Financial accounting: provides information for managers inside the business as well as for, information must be relevant to needs of decision makers and be a decision makers outside the organization faithful representation of the entity(cid:495)s economic activities. Management accounting: generates inside information for the managers of the organization, internal information must be accurate and relevant for the decision needs of managers. Proprietorship: unincorporated business with a single owner, proprietor is personally liable for all business debts, for accounting the proprietorship is a separate entity from the proprietor. Generally accepted accounting principle (gaap: specify standards for how accountants must record, measure and report financial information, gaap is established by the canadian institute of chartered accountants (ckca) Publicly accountable enterprises (paes: corporations and other organizations that have issued or plan to issue shares or debt in public markets.
