BUS-A 100 Chapter Notes - Chapter 4: Legal Personality, Sole Proprietorship, Financial Statement
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BUS-A 100 Full Course Notes
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Document Summary
Control environment: risk assessment, control activities, information & communication, monitoring. Review - service provided by cpas to give the reader limited assurance, less than with an audit, weaker than an audit: check management representations, company is applying generally accepted accounting principles gaap. Compilation - gives the reader of the financial statement no assurance from the cpa, independent accountants hired to put together financial statements from the books and records of a company. Sole proprietorship - business owned by one individual and is not incorporated, easy to start up, no additional business income tax, computes taxable income on owner"s tax rate, owner is a liability, no way to share ownership. Partnership - more than one owner, not incorporated, separate entity for tax purposes, partners pay taxes on income or loss earned by the company, partnership return is a form k-1 for each partner, partners assets not protected liable,
