ACCT 2000 Chapter : Accounting 2000
Document Summary
Proprietorship- single owned business, only gets taxed one time, your business and personal tax return are linked together (big advantage). Not easy to change ownership; all partners would have to agree to sell. Llc- limited liability corporation and receive the tax advantages; makes it a lot harder for someone to sue you personally, they can sue your business but not you. The business gets taxed, dividends (claimed on your personal returns), corporate returns. Accounting is the information system that identifies, records, and communicates the economic events of an organization to interested users. - economic events (transactions)- identify them, make records of all transactions, they you take all the information and make reports and the reports tell us how well the business is doing. Users are: internal users- people that work inside the company. Managers, supervisors, vp, etc: external users- people who are outside of the company. They do business with us but not a part of the company.
