ACCT Chapter 1 - Chapter 1 Business Entity Forms Sole...

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Chapter 1 Business Entity Forms Sole Proprietorship – one individual Partnership – two individuals Corporation – many individuals Corporations alone have limited liability – the max you can lose is the amount invested Corporations alone have separate business taxes Types of Businesses Service Business – provide service Merchandising Business – sell already made products Manufacturing Business – produce finished products Corporation Owners of a corporation are called shareholders or stockholders If only one class of stock, it is called common stock Top Corp – 2008 = Walmart; 2009 = Exxon Mobil Accounting is the language of Business 1. Identify business activities (transactions) 2. Record those transactions 3. Communicate the transactions via financial statements Users of Acct Info External users – financial accounting provides external users with financial statements o Lenders
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o Shareholders o Government o Consumer Groups o External Auditors Public accounting firms that verify a firms statements once a year
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This note was uploaded on 05/26/2011 for the course ACCT 2101 taught by Professor Bhan during the Spring '07 term at University of Georgia Athens.

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ACCT Chapter 1 - Chapter 1 Business Entity Forms Sole...

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