ACCT207 Chapter Notes - Chapter 1: Certified Public Accountant, Balance Sheet, Retained Earnings
2 Nov 2016
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Sole proprietorship: one person, simple to set up and gives you control, tax advantages. Partnership: owned by 2 or more ppl, simple to establish, shared control, broader skills and resources, tax advantages. Corporation: owned by stock holders, easier to transfer ownership, easier to raise funds, no personal liability. Internal users: managers who plan, organize and run a business (marketing managers, production supervisors, finance directors, and company officers) External users: investors (owners) make decisions to buy, sell or hold stock. Creditors such as suppliers and bankers evaluate the risk of selling on credit or lending money. Accounting information system: keeps track of results of each of various business activities financing, investing and operating. Creditors: persons or entities that a person/company owes money to. Liabilities: amounts owed to creditors - in the form of debt and other obligations. Note payable: owe money to a bank that you borrow for a specific purchase.
