ACC 151 Chapter Notes - Chapter 1: Financial Statement, Personal Finance, Financial Accounting
11 Sep 2016
School
Department
Course
Professor
Document Summary
Statement of retained earnings (included in statement of stockholder"s equity) Financial statements: business documents that companies use to report the results of their activities to various user groups. Can include managers, investors, creditors, and regulatory agencies. Measures business activities, processes data into reports, communicates results. Accounting cycle: the process by which a company"s financial statements are prepared. Financial accounting: for decision makers outside the entity. Management accounting: for managers in a company. Small retail stores or solo providers of professional services. Business records do not include proprietor"s personal finance. Two or more parties as co-owners= partner. Losses of partnership flow through to the partners. Each partner takes a proportionate share of the entity"s taxable income and pays tax according to that partner"s individual or corporate rate. Wayward partner cannot create a large liability for the other partners. Business is liable for the company"s debts. Pays no business income tax- flows through to members.
