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Form of business association Accounting

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1. Accounting - Practice and body of knowledge concerned primarily with
(1) methods for recording transactions, (2) keeping financial records, (3)
performing internal audits, (4) reporting and analyzing
financial information to the management, and (5) advising
on taxation matters. It is a systematic process of identifying, recording,
measuring, classifying, verifying, summarizing, interpreting and
communicating financial information. It reveals profit or loss for a
given period, and the value and nature of
a firm's assets, liabilities and owners' equity. Accounting provides information
on the (1) resources available to a firm, (2)
the means employed to finance those resources, and (3) the results achieved
through their use.
2. Form of business association
1. Corporations
2. partnership/joint ventures
3. limited partnerships
4. limited liability companies
5. statutory creations.
3. Assets - There is no more fundamental concept in accounting than assets.
Assets, or economic resources, are the lifeblood of both business enterprises
and not-for-profit organizations. Without assetsto exchange for, combine
with, or transform into other assetsthose entities would have no reason to
exist. Economic resources or assets and changes in them are central to the
existence and operations of an individual entity.
4. Liability - is defined as an obligation of an entity arising from past
transactions or events, the settlement of which may result in the transfer or
use of assets, provision of services or other yielding of economic benefits in
the future.
5. Owners Equity - is owner's ownership (equity) in the business, or the
amount of the business assets owned by the business owners. The
calculation for owners equity is assets minus liabilities.

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 1. Accounting - Practice and body of knowledge concerned primarily with (1) methods for recording transactions, (2) keeping financial records, (3) performing internal audits, (4) reporting and analyzing financial information to the management, and (5) advising on taxation matters. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity. Accoun ...
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