会计基础horngren-acct7-ch01-3.pptVIP

Accounting and theBusiness Environment Chapter 1 Types of Business Organizations P – A business is owned by a single individual. P – A business is owned by two or more owners. C – A business is owned by stockholders. Types of Business Organizations Proprietorships – A business is owned by a single individual. Partnerships – A business is owned by two or more owners. Corporations – A business is owned by stockholders. Corporations What are some advantages? separate l existence l l of stockholders transferability of ownership relatively easy What are some disadvantages? t – possible d taxation e governmental regulation Corporations What are some advantages? separate legal existence limited liability of stockholders transferability of ownership relatively easy What are some disadvantages? taxes – possible double taxation extensive governmental regulation Characteristics of Businesses Characteristics of Businesses GAAP Generally Accepted Accounting Principles Accounting g that govern how accountants measure, process, and communicate financial information Formulated by F A Standards B (FASB) Issues – S of F Accounting S , SFAS and Interpretations. GAAP Generally Accepted Accounting Principles Accounting guidelines that govern how accountants measure, process, and communicate financial information Formulated by Financial Accounting Standards Board (FASB) Issues – Statements of Financial Accounting Standards, SFAS and Interpretations. Entity Concept Entity Concept The Reliability (Objectivity) Principle The Reliability (Objectivity) Principle The Cost Principle The Cost Principle The Going Concern Concept The Going Concern Concept Stable-Monetary-Unit Concept Stable-Monetary-Unit Concept A corporation with 2 stockholders goes bankrupt owing $10,000. How much does each stockholder