By Leslie Turner
This re-creation keeps to arrange key AIS direction content material (e.g. ERP and relational databases, REA, controls) round 4 significant issues: simplicity of writing and presentation (lower level), enterprise approaches, accounting and IT controls, and ethics because it pertains to accounting structures. this article bargains real-world concentration that affects the bankruptcy exposition, dialogue questions, and end-of-chapter workouts and situations. It comprises an emphasis on clarity that extends past the narrative to the flowcharts and illustrations.
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A corporation is a business that is chartered (incorporated) as a separate legal entity under the laws of a particular state or country. With a proprietorship or a partnership, the owners are the business. With a corporation, the operations and obligations of the business are legally separated from the personal affairs of the owners. Typically, stockholders in a corporation can freely buy and sell their interests, thus allowing the corporate ownership to change without dissolving the business. The stock- Owners equity is decreased when the owners take back part of their investment.
In the same way that assets can be acquired by borrowing or by owners investment, assets can also be acquired by providing a product or service for which customers are willing to pay. Manufacturing and merchandising companies receive revenues from the sale of merchandise. For example, Safeway s revenue is the cash that customers pay in exchange for groceries. A service enterprise generates revenues from the fees it charges for the services it performs. For example, a portion of the sales price of Microsoft software is not payment for the software itself, but instead is an advance payment for the customer support service that Microsoft promises.
I. 0 *Net income is in millions of dollars. Source: Fortune 500 listing, 1999. com. gains (losses) Money made or lost on activities outside the normal operation of a company. ample, Safeway and Microsoft deal with interest and income taxes in a similar way, even though the two companies operate in completely different industries. Two other items that frequently appear in the income statement are gains and losses. Gains and losses refer to money made or lost on activities outside the normal business of a company.