ARBUS102 Chapter Notes - Chapter 1: Accounts Payable, Sole Proprietorship, Retained Earnings
19 Jan 2016
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Owned by 1 person who is liable for business debts. Co-owned by 2+ persons which all partners are liable for . Require a lawyer to set a partnership agreement. The owners of the business (shareholders) are not liable. Shareholders: owns part of a company through stock ownership. Stakeholder: interested in the performance of a company. Is a system of analyzing, recording, and summarizing the results of a business"s activities and then reporting the results to decision makers. Reports are used inside the company that includes detailed financial. Reports are used outside the company by creditors, investors, and. Goal: uses compressible standards to compare companies other. The accounting system reports information for decision makers: Anyone to whom money is owed: i. e. banks, suppliers. Concept: what a company owns must equal what a company owes to tis creditors and shareholders. Separate entity assumption not of its shareholders. Requires a business"s financial reports include only the activities of the business and.
