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