ACCT 2001 Chapter : CH 1 Notes
Document Summary
External user: regulatory agencies, irs, investors, creditors (people you owe money to), labor unions, customers. Us regulators and lawmakers were very concerned that the economy would suffer if investors lost confidence in corporate accounting because of unethical financial reporting. Recent financial scandals include: enron, worldcom, healthsouth, aig, and others. Congress passed sarbanes-oxley act of 2002: increased the auditors duties and increased company management duties. (helps promo ethical financial reports) To start a business: financing, raise money, own capital, get investors, stockholders (when incorporating, borrowing money. Bonds payable- used when corporations need a lot of money, get it from a lot of people. Accounts receivable right to receive money from a customer, in the future, Expenses cost of assets consumed or services used. Liabilities arising from expenses include accounts payable, interest payable, ***important to look at header of statements, look at the dates*** Net income is needed to determine the ending balance in retained earnings.
