ACCT207 Lecture Notes - Lecture 1: Healthsouth, Sole Proprietorship, Accounts Payable

• School: University of Delaware
• Department: Accounting
• Course: ACCT207
• Professor: Somerville Scott

Document Summary

The forms of business organization and the uses of accounting information. Simple to establish, owner controlled, tax advantages. Ex: barber shops, law offices, auto repair shops. Shared control, broader skills and resources, tax advantages. Easier to transfer ownership, easier to raise funds, no personal liability, two levels of tax (disadvantage) Marketing: what price should apple charge for an ipad to. Human resources: can general motors afford to give its. Us regulators/lawmakers were concerned that the economy would suffer if investors lost confidence in corporate accounting because of the unethical financial reporting. Recent financial scandals include enron, worldcom, aig, Top management must now sign off on statements. Effective financial reporting depends on sound ethical behavior. Recognize a situation and the ethical issues involved. Identify/analyze the principle elements in the situation. Identify the alternatives; weigh the impact of each alternative on various stakeholders. The three principal types of business activity. Results of these activities kept track by the accounting information system.