ETS Exam Questions Perfectly Answered!!

Financial Statements - are the business documents that companies use to report the results of activities to various external user groups. Accounting - is an information system. It measures business activities, processes date into reports (including financial statements) and communicates results to decision makers. Accounting is the "language of business" Users of Accounting Information - Individual Investors and Creditors Regulatory Bodies Nonprofit Organizations Financial Accounting - Provides information for decision makers outside the entity. Investors Creditors Government agencies And the public Managerial Accounting - Provides information for internal users, management proprietorship - is a single owner. Partnership - Two or more parties are co-owners and each owner is a partner. Limited Liability Company (LLC) - One in which the business (not the owner) is liable for the company's debt.Corporation - Is a business owner by stockholder or shareholders who own stock (common or preferred) representing shares of ownership in that corporation. GAAP - Generally Accepted Accounting Principles FASB - Financial Accounting Standards Board IASB - International accounting Standards Board The Accounting Equation - Assets = Liabilities + Owners Equity