ACCT I S 100 Chapter Notes - Chapter 1: Retained Earnings, Financial Statement, Income Statement

• School: UW-Madison
• Department: Accounting And Info Systems
• Course: ACCT I S 100
• Professor: Warfield Terry

Document Summary

Accounting is not just numbers- it is information that can be used to predict future economic outcomes. Simple to set up and gives owner control. Personally liable for all debts and legal obligations. Pools economic resources and unique skills of each partner. Partners are personally liable for all debts and legal obligations. Shares of stock are easy to sell. Stockholders not personally liable for debts and legal obligations of the business. Users of accounting information: internal users. Managers use ais information to plan, organize, and run business operations. Need detailed reports on a timely basis: external users. Use ais information to assess the risk of granting credit or loaning money to a business. Use ais information to help them decide whether to buy, Investors (stockholders) hold or sell shares of a company"s stock: financing activities- (cid:498))t takes money to make money(cid:499)