Notes

#Accountants:
-CPA (certified public accountants are authorities for GAAP
-Public accounting - serves various organizations for a fee
-managerial accounting - works for organization
-consulting - uses knowledge to consult
----------------------------
#Types of Organizations:
-business is an organization that provides goods or services to other businesses
-entrepreneur undertakes business operation and accepts responsibility for risks
-various types of organization structures - Proprietorship, Corporation, Non-Profit etc.
-Proprietorship - owned by one person, suffers from losses, responsible for all debts
-Partnership - owned by two or more people, limited partnership is with a general & limited partner
-Co-Operative - Enterprise owned/ managed by those who use services, absence of profit motive
-Corporations functions through managers/owners who are stockholders. Not responsible for debt, right to profit.
-Non profit redistribute any profits made, no owners but are accountable - Churches, Hospitals, etc.
-------------------------
-Stakeholders - rely on accurate information to make decisions. Internal and External
-GAAP: Generally Accepted Accounting Principles, i.e. match revenue in the same period
-Prime Responsibility of Accountant: accurately reflect the financial status of the business
-Ethics: moral principles/systems by which these actions are measured. maybe legal, but immoral.
-Benefits of good accounting system:
- Report business transactions accurately
- Reliable and clear assesment of financial statements
- Assist in management, economic, strategic decisions
Furnish through balance sheet: -Net Worth, -Book value of assets & liabilities
Public Accountant insures that financials records follow GAAP
Bookkeeper maintains day-to-day transactions