The word or in probability implies that we use the _____ Rule.
Ch. 1 Class notes for Fundamentals of Financial Accounting, 5e by Phillips/Libby/Libby UT San Antonio edited by Linda Vaello, CPA Chapter 1 Business Decisions and Financial Accounting Chapter 1 Learning Objectives LO 1-‐ 1 Describe various organizational forms and business decision makers. LO 1-‐ 2 Describe the purpose, structure, and content of the four basic financial statements. LO 1-‐ 3 Explain how financial statements are used by decision makers. LO 1-‐ 4 Describe factors that contribute to useful financial information. LO 1-‐ Organizational Forms: Three main types of business organizations: 1. _____________________ – a business organization owned by one person. The owner is personally liable for all debts of the business. 2. _______________ – a business organization owned by two or more people. Each partner is personally liable for all debts of the business. 3. _________________ – a separate entity from both a legal and accounting perspective. Owners of corporations (stockholders) are not personally responsible for debts of the