ACC 100 Chapter Notes - Chapter 1: Limited Liability, Sole Proprietorship, Mexican Peso

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29 Nov 2011

Document Summary

Corporation: many owners, ownership based on shares, organized under province o r federal government, limited liability. Unlimited liability meaning that if you cannot pay bank creditors or the bank th ey can take anything from your in terms of compensation, even personal property. Internal: management - need to know accounting info in order to know what best s uits their needs. Indentifying, measuring and communicating economics information to various users. Reports the assets, liabilities, and shareholders(cid:0) equity as at a specific point i n time. Reports the cash receipts and payments for a specific period of time. Reports the results of operations for a specific period of time. Reports the changes in retained earnings for a specific period of time. Each entity has its own books, records and financial statements that are separat e from owners. No intermingling of personal and business assets and liabilities or income and e xpenses. Record assets at cost paid to acquire them.