ACCT207 Final: ACCT 207 BOOK NOTES
4 Sep 2018
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Identify the forms of business organization and the uses of accounting information. Forms of business organization: sole proprietorship, easy to set up, gives you control over the business, tax advantage, reliable for all debts & legal obligations, ex. Retail and service type business (lawyers, doctors, architects: corporation, = business organized as a separate legal entity owned by stockholders, investors receive shares of stocks to indicate their ownership claim, stocks easy to sell. Limited liability corporations (llcs) and subchapters s corporation. Users and uses of financial information: purpose; provide inputs for decision making, accounting: information system that identifies records, and communicates the economic events of an organization to interested users, users of accounting info, internal users & external users. Explain the three principal types of business activity: financial activities, two sources of outside funds, borrowing money (debt financing) Investing activities: involves the purchase of the resources a company needs in order to operate, ex.
