ACCT 217 Lecture Notes - Lecture 1: Accounts Payable, Accounts Receivable, Legal Personality
3 Jul 2015
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Document Summary
Accounting identifies and records the economic events of an organization and communicates to interested users. Managers, employees, and others who plan, organize, and run the company. For accounting information to have value, preparers must have high ethical standards: Accountants, other professionals, and most companies have rules or codes of conduct to guide ethical behavior. Similar to proprietorship except owned by more than one person. Separate legal entity owned by shareholders (owners of shares) All companies are involved in all three activities: Obtaining (and repaying) funds to finance the operations of the business: Bank indebtedness, bank loans, noncurrent debt such as mortgages, bonds, leases. Purchase or sale of long-lived assets needed to operate the company. Purchase or sale of long-lived assets such as property, plant and equipment and intangible assets. Operating activities are the main day-to- day activities of the business.
