Introduction to Accounting
By
Joel E.Thompson
I.
Business – an economic entity that sells goods or services to customers and
whose owners expect an adequate return for their investment that is at risk.
Three basic types:
A.
Proprietorship - a business owned by one person who is personally liable
for the debts of the business;
B.
Partnership - a business owned by two or more persons (partners) who are
personally liable for the debts of the business;
C.
Corporation - a business that is a separate legal entity owned by
stockholders who are not personally liable for the debts of the business.
II.
Accounting – the process of providing financial information about an
economic entity.
It involves identifying, recording and communicating
information about economic events.
III.
Financial Accounting – the process of providing financial information to those
primarily outside (e.g., investors and creditors) of an economic entity (a
business in this course).
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- Spring '08
- Thompson
- Accounting, Balance Sheet, Income Statement, Generally Accepted Accounting Principles, U.S. Securities and Exchange Commission, Certified Public Accountant
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