assets will come from. The decision depends on several factors, including the capital requirements of the business, the flexibility of management decisions, costs of formation, government restrictions, and tax considerations. Sole proprietorship, partnerships, corporations, and S-corporations are four legal forms of business organization an entrepreneur may consider when forming a business. (Sitarz, 21) Advantages and Disadvantages of the four business forms of organization The most common and simplest
Words: 2154 - Pages: 9
Basic Accounting Concepts and Business Structures Basic Accounting Concepts and Business Structures The accounting environment is constantly changing to improve so decision-making in the business world will thrive. To be successful in a business, understanding the fundamental concepts are essential to make informed decisions. The federal government formed the SEC to standardize financial information and to keep the financial environment regulated
Words: 764 - Pages: 4
Basic Accounting Concepts and Business Structures David Lickem ACC/537 April 15, 2013 Basic Accounting Concepts and Business Structures The accounting profession as a whole is extremely complex and ripe with regulations and rules. It is also enormously important to any organization, big or small, and thus can be a very intimidating career choice. As with anything else though, reaching a destination requires a starting point, and in accounting, a good starting point is to understand basic
Words: 1165 - Pages: 5
Introduction……………………………………………………………………………………………….3 1. The different types of business units: a) Sole proprietorship………………………………………………………………………..4 b) Partnership……………………………………………………………………………………5 c) Private limited company………………………………………………………………..6 d) Public limited company………………………………………………………………….6 2. Difference between ,Financial accounting and Management accounting: a) Nature of report…………………………………………………………………………….6 b) Details level……………………………………………………………………………………7 c) Regulations……………………………………………………………………………………
Words: 2521 - Pages: 11
operation were improper. First of all, they practice unethical and dishonest practices which victimized workers, consumers, taxpayers and stockholders. Enron created partnerships within their own organization which led to them creating new financial instruments, called SPE’s (special purpose entities) which was used to falsify the accounting. The improper financial reporting was to make the company look good, instead of assuring that the figures are accurate and reliable. Enron's legal department wrote
Words: 2117 - Pages: 9
Introduction to Financial Accounting Accounting works as an indicator of success (making or losing money) for a business, or a tool that is used to make decisions regarding how a company should grow. “ACCOUNTING IS THE LANGAUGE OF BUSINESS”. Definition: Accounting Information system that identifies and records the economic events of an organization and communicates to interested users. Accounting information are reported and presented in financial statements! Users of Accounting information can
Words: 669 - Pages: 3
The advantages of a partnership is the fact that you are only taxed once and it is easy to create. However there is unlimited liability incurred by each general partner that normally restricts the growth potential of most partnerships. 2. Partnership accounting differs from corporate accounting in the sense that there are various capital accounts with the partners. They is usually a different way to handle each capital account based on the contract they agreed on. Accounting procedures are standard
Words: 724 - Pages: 3
Generally accepted accounting principles (GAAP), created with authoritative support, are principles, rules and guidelines required to follow by accountants when preparing financial statements. The Hierarchy of GAAP is a structure consists of four different categories of well- developed accounting principles. The categories are from A to D with category A containing principles with the most authoritative support and category D having the lease. Major sources of The Hierarchy of GAAP are FASB Standard
Words: 741 - Pages: 3
Explaining Basic Accounting Concepts and Business Structures ACT/537 March 12, 2012 Del Roberts Explaining Basic Accounting Concepts and Business Structures The three most authoritative sources of Generally Accepted Accounting Principles (GAAP) include FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICAP Accounting Research Bulletins (ARP) (Kieso, Weygandt, & Warfield, Chapter 1, Pg. 12, 2007). The FASB Standards, Interpretation, and Staff Positions issued
Words: 748 - Pages: 3
Explaining Basic Accounting Concepts and Business Structures The Hierarchy of Generally Accepted Accounting Principles identifies the sources for the accounting standards and principles. These sources include “FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins” (Kieso, Weygandt, & Warfield, 2007, p. 12). When companies prepare financial statements in accordance with GAAP, they sometimes run into situations in which some standards do not
Words: 651 - Pages: 3
