Textbook Notes (368,566)
Canada (161,966)
Accounting (248)
ACCT 2220 (54)
m (7)
Chapter 1

ACCT NOTES - Chapter #1

3 Pages
138 Views
Unlock Document

Department
Accounting
Course
ACCT 2220
Professor
m
Semester
Winter

Description
ACCT NOTES – CHAPTER #1 Accounting - The information system that identifies and records the economic events of an organization, and then communicates them to a wide variety of interested users. Users and Uses of Accounting Users of accounting information can be divided broadly into two types: internal users and external users Internal Users: - Managers plan, organize and run companies. - They work for the company. - Financial Accounting. - Management Accounting - Include: Finance directors, marketing managers, human resource personnel, production supervisors, and company officers. External users: - Primary Users are: 1- Investors 2- Creditors 3- Others: tax authorities, regulatory agencies, customers, labour unions, economic planners. Forms of Business Organizations There are three forms of business organization: proprietorship, partnership and corporation. Proprietorship: - A business owned by one person - Simple to set up and gives control over the business - The owner receives any profits, suffers any losses, and is personally liable for all debts of the business. - There is no distinction between the owner and the business. - Examples: salons, farms, small retail stores, plumbers, mechanics. Partnerships: - Similar to proprietorship except with more than one owner. - Typically used to organize retail and service business, including lawyers, doctors, architects, engineers and accountants. Corporations: - As an investor in a corporation, you receive shares to indicate your ownership claim. - Investing makes it easier for corporations to raise funds - Shareholders have limited liability since they only risk losing the amount that they have invested in the company’s shares. - May be public or private corporations. - Public: commonly distribute their financial statements to shareholders, creditors, other interested parties, and the general public upon request. - Private: do not issue publicly traded shares Business Activities All businesses are involved in 3 types of activity: Financing, investing, and operating. Financing Activities - Obtaining and repaying funds to finance the operations of the business - Examples: borrowing
More Less

Related notes for ACCT 2220

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit