chapter 1 notes

chapter 1 notes - I. Types of businesses A. Corporation 1....

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I. Types of businesses A. Corporation 1. Owners are called shareholders II. Importance of accounting A. Accounting is a system that identifies, records and communicates information that is relevant, reliable and comparable with the goal of helping users make better decisions 1. Activities include. .. a) Identifying business activities (transactions) b) Recording business activities c) Communicating business activities B. Users include. .. 1. External (lenders, shareholders, governments) a) Receive financial statements 2. Internal (managers, officers/ directors) a) Provides information needed for internal decision making III. Generally accepted accounting principles : governing concepts and rules A. Rules 1. Information must be relevant and affect the decisions of users 2. Information must be reliable and be trusted by users 3. Information must be comparable and be used in comparisons across years and companies B. Setting principles 1. Financial accounting standards board: sets both broad and specific principles
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This note was uploaded on 02/09/2012 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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chapter 1 notes - I. Types of businesses A. Corporation 1....

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