MGT120H5 Study Guide - Midterm Guide: Cash Flow Statement, Canada Revenue Agency, Retained Earnings
12
MGT120H5 Full Course Notes
Verified Note
12 documents
Document Summary
Acquire a new competitor: investors/creditors: provide money to finance a businesses acitvites. Financial accounting: provides information for managers inside the business and for decision makers outside the organization, such as investors, creditors, government agencies and the public. Managerial accounting: generates inside information for the managers of the organization. Ex budgets, forecasts, projections that are used to make strategic business decisions. Organizing a business: proprietorship: unincorporated business with a single owner called the proprietor. Life of entity: limited by owners choice or death. Personal liability of owners for business debts: proprietor is personally liable. Accounting status: accounting entity is separate from proprietor: partnership: unincorporated business with 2 or more parties as co-owners and each owner is a partner. Income is based on an agreed upon percentage, not a taxpaying entity. Life of entity: limited by owners choices or dearh. Personal liability of owners or business debts: parnters are usually personally liable.
