ACCT 1220 Lecture Notes - Lecture 1: Legal Personality, Cash Flow, Accounting Equation
22 Nov 2017
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Document Summary
Accounting: the information system that identifies and records the economic events of an organization, and then communicates them to a wide variety of interested users. Canada revenue agency: proprietorship, owned by one person (proprietor, simple to set up, owner has control over business, limited life, unlimited liability. Income tax paid by owner: partnership, similar to a proprietorship except owned by more than one person, formalized in a written agreement, limited life, each partner has unlimited liability. Income tax paid by individual partners: corporations, separate legal entity owned by shareholders. Borrowing money or repaying loans (debt), selling or repurchasing shares (equity). Forms of debt: bank indebtedness, bank loans, noncurrent debt such as mortgages, bonds and leases. Investing purchase of sale of long-lived assets needed to operate the company. Examples: purchase or sale of investments not held for trading, and purchase of property, plant, and equipment and intangible assets: operating the main day-to-day activities of the business.
