ACCT 2001 Chapter Notes - Chapter 1: Financial Statement, Net Income, Dollar Sign

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22 Jan 2018
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ACCT 2001 Full Course Notes
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ACCT 2001 Full Course Notes
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Business decisions and financial accounting: organization forms of business, sole proprietorship, owned by one individual, owner liable for all debt. Easiest form of business because doesn"t require many legal maneuvers. Profit or loss become part of owner"s taxable income: partnership, owned by two or more individuals. A little more expensive due to lawyer for partnership agreement. Taxed twice: different than sp and partnership, owner cannot lose more than their investment, disadvantages: high fees for creating a corporation and income taxes must be paid by the corporation and its owner. Can raise large amounts of money for growth because of division of ownership. A good system of financial recordkeeping: accounting. A system of analyzing, recording, and summarizing the results of a business"s activities and then reporting the results to internal and external decision makers. Allow internal users (employees) to make business decisions related to production, marketing, human resources and finance (how much to pay the employee, etc. : financial accounting reports.

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