IFRS
Canadian public businesses began following international standards in 2010 called International Financial Reporting Standards . It is a set of
... [Show More] accounting standards.
Sole Proprietorship
is a business in where the business is run by one owner and that owner holds Unlimited liability for that position. The owner/manager is cannot take time off their business.An example would be Joe's Pizza shop on the corner.
Cost Principle
is part of the Generally Accepted Accounting Principles also known as GAAP. This principal requires that assets (purchases) must be recorded at the given cash amount and only that amount .This value will not change later even if the market value changes. Professional accountants are also expected to follow these principals.
Unlimited Liability
is where if your company is in debt, they bank or whoever you own has the right to take your personal belongs like you car and your house.
For example, you owe the bank $20,000 from you company, they have the right to take your vehicle that also cost 20,000. YES...the owner is responsible for accidents on his or her business properties, can go into as much debt as he or she wants, is personally responsible for all business debts. If the debts are not paid creditors can legally demand personal assets to pay the debts back. Owner can be sued for millions of dollars
Corporation
a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law. In this form the shareholders (owners)are protected from losing their personal assets in the case the business is not able to pay its debts. i.e. limited liability
non-Profit Organization
business entity that is granted tax-exempt status by the Internal Revenue Service. Donations to a nonprofit organization are often tax deductible to the individuals and businesses making the contributions. Their goal is usually to fill a social need as opposed to making profit.
Accouting Designation:CGA
is an experienced nickname for Canadian Accountants, a person who has experienced or met the expectations of a Certified General Accountant of Canada. CGA has now merged with CA, and CMA to become CPA
Internal USers of Accounting Information
Financial accounting information is used for decision making by external users, like investors and creditors. Managerial accounting information is used for decision making by internal users, like the management or operational managers.
Business owners want to know whether their funds are being used properly or not so accounting information helps them to know the profitability and the financial position of the concern in which they have invest their funds.
Manufacturing Business
is any business that uses raw materials to make a finished good for consumers. These finished goods can are sold to a consumer or a retailer.
Some examples of manufacturing businesses are: Ford, SC Johnson and General Electric, etc.
Accounting Designation CPA
is someone that replaces those who are granted by the three former Accounting bodies in Canada. An example would be CGA or a CMA CPA stands for Chartered Professional Accountant.
Accounting Designation CMA
. It is an accounting designation whose holder has demonstrated a mix of expertise in financial accounting and strategic management. This designation is awarded to accounting and financial professionals who complete the following requirements: complete a bachelor's degree, obtain a basic background in economics, statistics and financial accounting, acquire two years of relevant work experience, pass two exams covering advanced financial planning and risk analysis and internal controls and financial decision making. CMA, CGA, and C.A. have merged to become CPA
Limited Liability
establishes the business as a separate entity. Shareholders (owners)are protected from losing their personal assets in the case the business is not able to pay its debts
is limited exposure to financial risk by investors of a company or a partnership. An example of a limited liability would be when an investor invests his money with a company or partnership, this specific investor will not be liable for any financial risk beyond what he has invested in the business entity.
CA
which is a professional designation that has merged with CGA and CMA in Canada to become the new designation CPA
Chartered accountants work in all fields of business and finance, including audit, taxation, financial and general management. Some are engaged in public practice work, others work in the private sector and some are employed by government bodies
The purpose of accounting
The purpose of accounting is to provide the financial information that is needed for business decision-making.
Example: Using a company's financial information to prepare reports and make business decisions such as investing, or lending money, etc.
ASPE
"Accounting Standards for Private Enterprise." It is basically a new accounting standard that developed specifically for private Canadian enterprises.
business Entity Concept
states that the transaction associated with a business must be separately recorded from the owners personal assets.
example: an owner should not place their family automobile on thier balance sheet
External USers of accounting information
are outside of the company who uses financial information or accounting information to make decisions for the company. But they are not involved with the operations that occur in the business. Such as governments and banks.
Private Business
a company that does not have shares traded on the stock market. It may be owned by one person, a family, or a small group of people.
Accountant
is someone that keeps, audits and inspects the financial records of individuals or business concerns and prepares financial and tax reports. Example: prepare and examine financial records.
What is accounting
is the gathering (and classifying) , recording, summarizing, and analyzing of financial information.
e.g An example of accounting would be a student with a part time job, who keeps track of the money they receive from the job and makes a spending budget accordingly
Service Business
A commercial enterprise that provides work performed in an expert manner by an individual or team for the benefit of it's customer.
Partnership
A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business.
Accounting clerk(book keeper)
is a person who records the day-to-day transactions of a business. Which contain records of purchases, sales, receipts, and payments
Merchandising Business
buys goods and resells them at a higher price for profit.
Public Business
a company that lists its stocks (shares) for sale on a stock exchange and is accountable to its many shareholders.
GAAP
Stands for (Generally Accepted Accounting Principles) and it is a set of rules or standards accountants must follow.
An example is the "The Cost Principle " [Show Less]