Accounting 200 Midterm 1 (BYU) Exam Study Set
SEC - ANSWER Securities and exchange commisison- regulates the capital
transactions of public companies
GAAP - ANSWER The Standards of accounting that make the information
comparable and Credible
AICPA - ANSWER Initially set up by the SEC to monitor the GAAP. Now in charge
of setting up the auditing process
FASB - ANSWER Private board that now establishes the GAAP
Debt and Equity - ANSWER 2 forms of financing
Debt financing - ANSWER Borrowed resources that must be repaid at specific
future dates (financing)
Equity Financing - ANSWER Contributions by investors, need not be repaid
(financing)
Financial Accounting - ANSWER Provides information to creditors and to gov't
through financial statements.
Management accounting - ANSWER Provides information to management to help
them make decisions (interior)
Proprietorship, Partnership, Corporation - ANSWER 3 types of business
ownership
Salaries and bonuses to owners, Subchapter S. Election, Limited Liability corp. -
ANSWER Ways to evade double taxation
Subchapter S. Election - ANSWER For smaller corporations, allows them to be
taxed as a proprietorship/partnership
LLC (Limited Liability Corp) - ANSWER Liability protections as if it were a
corporation but a partnership for taxation
Shareholders, Board of Directors, Managers, Employees - ANSWER
Organization of a Corporation
SEC - ANSWER Securities and exchange commisison- regulates the capital
transactions of public companies
GAAP - ANSWER The Standards of accounting that make the information
comparable and Credible
AICPA - ANSWER Initially set up by the SEC to monitor the GAAP. Now in charge
of setting up the auditing process
FASB - ANSWER Private board that now establishes the GAAP
Debt and Equity - ANSWER 2 forms of financing
Debt financing - ANSWER Borrowed resources that must be repaid at specific
future dates (financing)
Equity Financing - ANSWER Contributions by investors, need not be repaid
(financing)
Financial Accounting - ANSWER Provides information to creditors and to gov't
through financial statements.
Management accounting - ANSWER Provides information to management to help
them make decisions (interior)
Proprietorship, Partnership, Corporation - ANSWER 3 types of business
ownership
Salaries and bonuses to owners, Subchapter S. Election, Limited Liability corp. -
ANSWER Ways to evade double taxation
Subchapter S. Election - ANSWER For smaller corporations, allows them to be
taxed as a proprietorship/partnership
LLC (Limited Liability Corp) - ANSWER Liability protections as if it were a
corporation but a partnership for taxation
Shareholders, Board of Directors, Managers, Employees - ANSWER
Organization of a Corporation
