ACC 131 Lecture 1: ACC131 Chapter 1 Notes
Document Summary
Accounting is the process of identifying, measuring, recording, and communicating financial information about a company"s business activities so decision makers can make informed decisions. Accounting information is useful because it helps people answer questions and make better decisions. Are usually small, local businessess (such as restaurants, photography studios, retail stores, or website providers). Simple to set up, and gives owner control over the business. The owner of the proprietorship is responsible for the debt of the business. They can be formed or disformed or dissolved at the wishes of the owner. A business that is owned jointly by two or more individuals. Smalll businesesses and many professional practices of physicians, lawyers, and accountants are often organized as partnerships. Relative to sole proprietorships, partnerships provide increased access to financial resources as well as acess to the individual skills of each of the partners. Similar to sole propreitorships, partnerships are accounting entities separate from the partners.
