BSB110 Lecture Notes - Lecture 2: Legal Personality, Sole Proprietorship, Westpac
Document Summary
Accounting is the communication of information (the language of business) Primary function of accounting is to provide financial information for decision making. Accounting information should be relevant and reliable. Financial accounting provides information to assist external users" decision making. Management accounting provides information for internal users" decision making (decision making within the business itself) Accounting is the process of identifying, measuring, recording and communicating the economic transactions and events of a business operation. Transactions are economic activities relevant to a particular business. Taking into consideration all transactions which affect business entity: measuring. Analysing, recording, classifying and summarising transactions: communication. Organised as a separate legal entity and owned by shareholders. A trust is a relationship or association between two or more parties whereby one party holds property in trust for the other: Corporate trust is a popular business structure for small business. A cooperative is member-owned, controlled and used, and must consist of five or more people:
