Case Study : Accounting Principles At Hdr

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Case Study: Accounting Principles at HDR
GB518 Financial Accounting Principles and Analysis
Professor Roger Mayer
By: Crystal Lyon

Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization’s business activities (Wild, 2012). When running a business, accounting is a vital key to how it is managed and ran. Accounting is used to communicate data that helps people make good financial decisions. In business it is used to provide data of the company’s finances pertaining to which direction the company is going. Every company relies on good accounting practices to ensure that the business is successful and making money.
Business Style
A Corporation is an independent legal entity owned by shareholders. This means that the corporation itself, not the shareholders that own it, it held legally liable for the actions and debts the business incurs (SBA, 2015). This style is considerably more complex than other business styles because it can have costly administrative fees and complex legal and tax requirements. This type of business is best for larger, more established companies with a larger number of employees. Corporations are formed by establishing a business name and registering legal name with the state government. They must include a corporation designation after the company name such as Corporation, Incorporated or Limited. When a

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