Public Administration - Municipal ACC106 Chapter Notes - Chapter 1: Financial Statement, Balance Sheet, Foal

• School: Seneca College
• Department: Public Administration - Municipal
• Course: Public Administration - Municipal ACC106
• Professor: Riggs

Document Summary

Accounting the information system that measures business financial activities processes that information into reports, and communicates the results to decision makers. Financial statement provides information that helps people make informed business decisions. Financial accounting branch of accounting that provides information to people outside the business. Management accounting branch of accounting that generates information for internal decision makers of a business. Audit a(cid:272)(cid:272)ou(cid:374)ta(cid:374)t"s p(cid:396)ofessio(cid:374)al opi(cid:374)io(cid:374) a(cid:271)out (cid:271)usi(cid:374)ess" fi(cid:374)a(cid:374)(cid:272)ial state(cid:373)e(cid:374)t. The professional accounting bodies and their standards of professional. Rules serve members by setting standards that they must meet, and providing a benchmark against which they will be measured by their peers. Advantages single owner, for accounting purposes each proprietorship is separate and distinct from the owner. Disadvantages limited life span, unlimited liability, limited availability to financial resources. Advantages 2+ owners, more labour specialization, more financial resources available. Disadvantages unlimited liability for general partners, potential conflicts among partners require written partnership agreements.