ACC 100: CHAPTER 1 NOTES
FORMS OF ORGANIZATIONS:
Sole Proprietorship: 1 owner, unlimited liability
Partnership: 2 or more owners, unlimited liability
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
TYPES OF BUSINESS ACTIVITY:
Financing▯ raising funds
Investing▯ buying land, building, equipment, etc.
Operating▯ selling goods/services
INTERNAL AND EXTERNAL USERS OF ACCOUNTING INFORMATION:
Internal: Management - Need to know accounting info in order to know what best s
uits their needs
External: Current and Potential Owners, Rev. Canada, Bank/Creditors, Customers,
Financial Analysts, Suppliers, Competitor, etc.
WHAT IS ACCOUNTING?
Indentifying, Measuring and Communicating Economics Information to Various Users
Reports the assets, liabilities, and shar▯ eholders as