What do we mean by external users and who are they? External users of accounting information are individuals and other enterprises that have a financial…

Just as there are many types of economic decisions, there are also many types of accounting information. The terms financial accounting, management accounting often are…

Financial information that is reported to investors, creditors, and other external to the reporting enterprise has certain qualities that must be understood for the information…

Internal decision makers employed by the enterprise, often referred to as management, create and use internal accounting information not only for exclusive use inside the…

The accounting information created and used by management is intended primarily for planning and control decisions. Because the goal of creating and using management accounting…

Some people think that the work of professional accountants consists primarily of bookkeeping. Actually, it doesn’t. In fact, many professional accountants do little or no…

A Partnership is an agreement in which you and one or more people combine resources in a business with a view to making a profit….

Starting a sole proprietorship is the simplest way to set up a business. As a sole proprietor you would be fully responsible for all debts…

Unlimited liability Lack of continuity in business organization in absence of owner Difficulty in raising capital No name protection

Low start-up costs Greatest freedom from regulation Owner in direct control of decision making Minimal working capital required Tax advantages to owner All profits to…