Accounting Notes- Day 1

Accounting Notes- Day 1 - ACCOUNTING 2000 8/24 Accounting...

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ACCOUNTING 2000 8/24 Accounting is an information system that identifies, records, and communicates economic events to interest parties. Chapter 1 Forms of business organization: 1. Proprietorship - generally owned by one person, simple to establish, owner controlled, tax advantages 2. Partnership - simple to establish, shared control, broader skills and resources, tax advantages 3. Corporation - easier to transfer ownership, easier to raise funds, no personal liability Internal Users- Managerial Accounting External Users- Financial Accounting (ex: IRS) Internal Users - finance, human resources (can we afford to give employees a pay raise?), management, marketing (what price will maximize profit?) External Users - taxing authorities, labor unions, customers, creditors, investors, regulatory agencies All businesses are involved in 3 types of activity- 1. Financing 2. Investing 3. Operating -accounting info system keeps track of these business activities Financing (aka “Debt or Equity Financing”)
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This note was uploaded on 01/19/2012 for the course ACCT 2000 taught by Professor Holmes during the Fall '08 term at LSU.

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Accounting Notes- Day 1 - ACCOUNTING 2000 8/24 Accounting...

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