Users of Accntg Info Flashcards
INTERNAL USERS
-Management
-Employees
-Owners or Stockholders
EXTERNAL USERS
-CUSTOMERS
-CREDITORS
-POTENTIAL INVESTORS
-GOVERNMENT
-ACADEME
-GENERAL PUBLIC
Main source of income of businesses
CUSTOMERS
Ex of users:
Pertron clients, people acquiring good or services
CUSTOMERS
Providers of additional funds when the initial investment of owners is exhausted; lend resources to business usually in form of money.
CREDITORS
Ex. Of users
Banks, Lending institutions, wealthy individuals; sometimes are government can also lend resources to a company.
CREDITORS
Provides of additional funds when the initial investment of owners is exhausted; invest resources in the business hoping to earn decent returns.
POTENTIAL INVESTORS
Ex. Of users
Wealthy individuals, other businesses planning to invest.
POTENTIAL INVESTORS
An external user whose primary role is to regulate businesses; studies financial statements to determine amount of taxes payable.
GOVERNMENT
Ex. Of users
Different Gov’t agencies, taxing authorities, government officials.
GOVERNMENT
Users accounting information primarily for academic purposes.
ACADEME
Citizens and residents of the country even though they do not plan to transact with the business; use financial statements to gauge the condition of the economy.
GENERAL PUBLIC
Ex. Of users
Professors, lecturers, students and researchers
ACADEME
Ex. Of users
Common people not connected with the company.
GENERAL PUBLIC
Employees that can make decisions for the company; considered the brain of the company.
MANAGEMENT
Ex, of users
Board of Directors, top management, middle-level managers, supervisors.
MANAGEMENT
Person in the company aside from managers and owners or stockholders; do not have authority to implement decisions.
EMPLOYEES
Ex of users
Laborers, field workers, non managerial employees.
EMPLOYEES
Existing investors of the company; concerned mostly with the profits of the company.
OWNERS OR STOCKHOLDERS
FORMS OF BUSINESS ORGANIZATIONS
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
COOPERATIVES
Ex. Of users
Founders of the company, owners, stockholders, partners, proprietors.
OWNERS OR STOCKHOLDERS
-A form of business organizations with only one owner
-Has no separate legal existence
SOLE PROPRIETORSHIP
-Can take fictitious names (otherwise known as trade names)
-Most common form of business organizations; easiest to establish
SOLE PROPRIETORSHIP
-A contract whereby two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.
-May also be formed for the existence of a profession
II. PARTNERSHIP
FEATURES OF PARTNERSHIP
1.Separate legal existence
2. Mutual agencies
3. Unlimited liability
4. Limited life
5. Co-ownership of partnership property
6. Partnership agreement
OTHER FORMS OF PARTNERSHIP
- limited partnership
- limited liability partnership
- limited liability company
unlimited liability
General partners
limited liability
Limited partners
aims to protect innocent partners from the malpractice of wrong doings of other partners
limited liability partnership
have features of both corporation and partnership
limited liability company
An artificial being created by operation of law, having the right of succession and powers, attributes, and properties expressly authorized by law or incident to its existence
CORPORATION
-Artificial well being. It means that it is an entity separate and distinct from its owners
-Is created by operation of law - Individuals cannot form a Corporation by themselves. The law must play a role in the formation of a corporation
-Has the right of succession - ownership rights can be passed to the other person through sale, donation, and any other mode of transfer
-The law Is the source of powers and attributes of a Corporation.
CORPORATION
FREATURES OF A CORPORATION
- separate legal existence
- limited liability
- transferable ownership rights
- virtually unlimited life (not exceeding of 50 years)
- corporation management
- double taxation
- Gov’t regulations
- Dividends – income distributed to stockholders
THREE TYPES OF DIVIDENDS
- cash dividends
- stock dividends
- property dividends
-A duly registered association of persons, with a common band of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required and accepting a fair share of the risk and benefits of the undertaking in accordance with universally accepted corporation principals.
-May be formed at least 15 persons
COOPERATIVES
