ACCT 2220 Study Guide - Final Guide: Accounts Payable, Accounting Equation, Retained Earnings
1 Mar 2017
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Chaper 1 : the purpose and use of financial statements. Uses and users of accounting: accounting identifies and records the economic events of an organization and communicates to interested, there are two broad categories of users. Managers, employees, and others who plan, organize, and run the company: external users. Taxing authorities and regulators: for accounting information to have value, preparers must have high ethical standards. Private if shares are not available to the general public. Three types of business activities: rules and practices for the preparation of financial statements, different for publicly-traded and private corporations. Publicly-traded corporations use international financial reporting standards (ifrs) Private corporations may use ifrs or accounting standards for private enterprises (aspe: proprietorships and partnerships generally follow aspe for external reporting. Not required to follow any particular standards for internal use: all companies are involved in all three activities. Operating: obtaining (cid:523)and repaying(cid:524) funds to finance the operations of the business.
