ACC 100 Chapter Notes - Chapter 1: Sole Proprietorship, Retained Earnings, Standard Cost Accounting

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Cheryl Dyson

Document Summary

Organization collection of individuals pursing the same goal/objective. Business entities generally organized to earn income (profit: sole proprietorship business with a single owner (operator) Affairs of business and individual must be kept separate. Economic entity concept single identifiable unit of an organization must be accounted for in all situations (separate personal costs from business costs separate financial statements) Cra doesn"t recognize separate existence of prop. From owner (not taxable, income earned is taxed on owners tax return: partnership owned by two or more individuals, and with the characteristic of unlimited liability. Have an agreement on how much each will contribute and how to divide income. Not taxable, individual partners pay taxes on their shares on income of the business: corporations entity organized under laws of a particular province/federal government, with ownership evidenced by shares. First, one must file articles of incorporation with gov. , if approves, corporate charter is issued and can begin issuing shares.