ACCT 2220 Lecture Notes - Lecture 1: Retained Earnings, Accounts Payable, Finance Lease

• School: University of Guelph
• Department: Accounting
• Course: ACCT 2220
• Professor: Michele Bowring

Document Summary

Include: finance directors, marketing team, hr ppl, production supervisors, company officers. Accounting provides: comparisons of costs to different operations, projections of profits, alalyze sales costs, forecast cash needs external users. Investors decide whether to buy sell or hold based on accounting info. Banks use accounting info to decide whether to loan money to the company. Potential employees look at the stability of the company. Labour unions use accounting info to bargain for better salaries and benefits. Single owner is responsible for all debts of business. Recieves all profit and endures all losses. Reporting entity concept is basically keeping you tax info about your business separete from personal tax info. A written agreement would outline provisions and shares of profits and losses etc. Corporations pay income tax as seperate legal entities. Revenue of all corps is far greater than all propieterships and partnerships. Long term debt payables such as : mortgage, bonds, finance lease.