Accounting Ch 2

Accounting Ch 2 - C hapter 2 Financial Statements and...

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Chapter 2: Financial Statements and Accounting Concepts/Principles Transactions are summarized in accounts, which are further summarized in financial statements. Accounts are records in which transactions affecting individual assets, liabilities, owners’ equity, revenue, and expenses are recorded. Financial statements show the financial position at the end of the period, earnings for the period, cash flows during the period, and investments by distributers to owners during the period. Financial statements are balance sheet, income statement, statement of cash flows, and statement of changes in owners’ equity. Proprietorship is a form of organization indicating individual ownership without the limited liability and features of a corporation. You are your own boss, but if the business fails, creditors are still owed money. Also, may have difficulty raising money for a capital base. Partnership is two or more individuals or corporations without the limited
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This note was uploaded on 03/02/2011 for the course ACCT 502 taught by Professor Jaggi during the Fall '10 term at Rutgers.

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Accounting Ch 2 - C hapter 2 Financial Statements and...

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