ACCTG 202 Chapter Notes - Chapter 1: Income Statement, Retained Earnings, Accounting Equation
Document Summary
Types of businesses: service businesses (provide services rather than products to customers, merchandising businesses (sell products they purchase from other businesses to customers, manufacturing businesses (change basic inputs into products that are sold to customers) Role of accounting in business: to provide info for managers to use in operating the business, also provides info to others in assessing the economic performance and condition of the business. Role of ethics in accounting and business: to provide relevant, timely info for user decision making, accountants must behave in an ethical manner so info is deemed trustworthy. Business entity concept: the business is viewed as an entity separate from its owner, creditors, or other businesses, may take the form of a proprietorship, partnership, corporation, or limits liability company. Wednesday, june 21, 2017: assets= liabilities + stockholders equity. The effect of every transaction is an increase or a decrease in one or more of the accounting equation elements.