- the language of business- system of preserving records of a company"s to work & communicating that details to decision makers


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1. Measure business tasks of a company2. Connect those measurements to external parties (creditos/investors) because that decisions-making purposes
- a firm that is legally separate from its owners- advantage of gift legally separate is the the shareholder have restricted liability- experience a kind of twin tax - first when the company earns it & payment corporate incomes taxes on that & 2nd when shareholder pay personal income counting on amounts the certain distributes to them together dividends.
- avoids stockholders native being held personally responsible because that the financial responsibilities of the corporation- stockholders have the right to lose your investment yet cannot shed their an individual assets (home, cars, etc)
- service owned by one person- flaw is that owners must have sufficient personal funds come finance the company in enhancement to the capability to borrow money- disadvantage is the it does not offer restricted liability - owners are held personally responsible because that the activities of the business- execute not market the benefit of lower taxes contrasted to corporations- taxed at owner"s personal income tax price - commonly lower 보다 the corporate taxes rate
- a organization owned by 2 or more persons- disadvantage is that it does no offer restricted liability - partners are held personally responsible for the activities of the businessdo not offer the benefit of lower taxes compared to enterprise - taxation at owner"s personal income taxes rate- commonly lower than the corporate tax rate
- transactions the agency has v investors & creditors, such as issuing share & borrowing money native a neighborhood bank
- transactions including the purchase & revenue of sources that room expected to benefit the firm for several years, such as purchase of equipment
- transactions the relate to the main operations the the company, such as providing commodities & services to client & the associated costs of law so, like utilities, taxes, advertising, salaries, rent, & utilities
- sources of a firm (supplies, inventory for sale, building, land, cash, equipment, etc)- investor & creditors claim the resources of the company
- amounts owed to creditors (amounts owed to the bank, fan to suppliers, workers, energy companies, & government in the form of taxes)- insurance claims that should be payment by a specified date
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