ACC 100 Study Guide - Midterm Guide: Deferral, Accounts Payable, Cash Flow

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Keith Whelan

Document Summary

Primary sector: grow and gather raw materials (potato farms, coal mining) Secondary sector: where raw materials are turned into products (table factory, car manufacturing, frozen food factory) Tertiary sector: goods and services are sold to consumers (restaurants, hair dressers) Example: fashion designer is in the secondary sector because it involves the manufacturing of clothing out of raw material. Internal: within the company, want high wages, ensure laws are followed, efficient processes, etc. (employee, marketing manager, tax manager, owners) External: outside the company, creditors, shareholders, government, customers, should they invest, is the company following laws, lend money, etc. Financial information: information is the end product of data processing. Once data has been categorized, analyzed, and formatted for presentation purposes it becomes information which can be used for decision making. The overall objective of gaap is to provide financial information about a business that is useful to stakeholders for decision making.