F U N A C C O CHAPTER 1 DEFINITION AND NATURE OF ACCOUNTING Accounting – its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. Stakeholders – all parties who have interest in an entity, whether indirect or direct. Stakeholders are grouped into two, namely: * External Users – groups or individuals who are not directly concerned with the day-to-day operations of the entity
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INTRODUCTION TO FINANCIAL O UC O O C INFORMATION LECTURE 1 LEARNING OBJECTIVES Understand the key differences between economics, accounting and finance Understand why financial information is important List the main users of accounting information and understand their information needs Distinguish between management accounting and financial accounting List the main types of business ownership and outline their characteristics Summarize the advantages and disadvantages of each type of business
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DEFINITION In a contract of partnership, two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profit among themselves. Two or more persons may form a partnership for the exercise of a profession civil Code of the Philippines, article 1767). An association of two or more persons to carry on, as co-owners, a business for profit (Uniform Partnership Act, section 6). Partnerships resemble sole proprietorships
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Creating, Financing, and Marketing a Business The Partnership There are several pros and cons of the partnership as a form of ownership. These are discussed in the succeeding paragraphs. The pros will be discussed first. The first pro of partnership is the ability to combine resources. When partners join forces towards a common goal, they are able to compliment the weaknesses of one and enhance the strength of others. These resources can come in many forms. Very often
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Accounting Principles Textbook/Workbook Arganda, Cardenas-Atis, Del Rosario Jr. (2007) Accounting For Partnership and Corporation Baysa, Lupisan (2004) Advance Accounting Baysa, Lupisan (2008) Management Uses of Accounting Bertol, Cruz, Santiago (1996) Accounting for Management Use Bertol (1996) Fundamentals of Accounting Cabrera, Ledesma, Lupisan (2010) Fundamentals of Accounting Principles Chua Jr., Arenas, Villarina (2007 CPA Examination in Practical Accounting Dayag
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RANULFO ALEJADO ACC/537 Financial Accounting Basic Accounting Concepts and Business Structures Executive Summary Most businesses nowadays either sole proprietorship, partnership or corporation should prepare financial statements in accordance with the Generally Accepted Accounting Principles (GAAP). Financial statements are the major source of financial information that would help management, creditors, and investors in their decision making. Financial reporting is one of the responsibilities
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Basic Accounting Concepts and Business Structures Accounting is referred to by many as the language of business. Accounting is used throughout the business world and around the globe. Business accounting starts with (GAAP) which stands for Generally Accepted Accounting Principles; “These are guidelines or, more precisely, a group of objectives and conventions that have evolved over time to govern how financial statements are prepared and presented” ("What Are Generally Accepted Accounting
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EXECUTIVE SUMMARY SHELTER PARTNERSHIP is a non-profit corporation that provides services for homeless people. The company collects donated goods and distributes them to homeless shelters. Among its services are providing technical, program development and public policy support, as well as direct material assistance to more than 200 homeless shelter and social agencies. Ruth Schwarts, executive director of the Shelter Partnership, Inc. handles the company’s cost accounting with confidence. She had
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I have to take into consideration which of the four forms of business organizations best suit my services. I must consider the legalities, taxes, and accounting implications associated with my type of business organization. This paper will explain the advantages and disadvantages of the four business forms, the legalities, taxes, and accounting principles associated with each form, and the type of business form that suits the services provided by my business. Sole Proprietorship Sole proprietorship
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Sources of Generally Accepted Accounting Principles A set of standards developed and universally practiced are called Generally Accepted Accounting Principles (GAAP). Generally accepted means that an authoritative accounting rule-making body, has accepted as appropriate due to their universal application. Otherwise each company would have created their own standards. There are some organizations that are very important in the development of GAAP, such as the Securities and Exchange Commission (SEC)
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