ACCOUNTFINAL1

ACCOUNTFINAL1 - Accounting 2001 Final Exam Review Sheet...

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Accounting 2001 Final Exam Review Sheet Revised Chapter 1: Accounting Terminology Financial Accounting – branch of accounting that provides info to people outside the firm Management Accounting – branch of accounting that provides info for the internal decision makers of a business Proprietorship – business with a single owner Partnership – an association of two or more persons who co-own a business for profit Corporation – a business owned by stockholders. Corporation is a legal entity, an “artificial person” in the eyes of the law Stockholder – person who owns stock in a corporation Stock – shares into which the owners’ equity of a corporation is divided Board of Directors – group elected by the stockholders to set policy for a corporation and to appoint its officers GAAP – Generally Accepted Accounting Principles – accounting guidelines, formulated by the Financial Accounting Standards Board, that govern how accounting is practical. Entity – an organization or a section of an organization that, for accounting purposes, stands apart from other organizations and individuals as a separate economic unit Cost Principle – principle that states that assets and services should be recorded at their actual cost, rather than their anticipated market value Stable-monetary-unit concept –the basis for ignoring the effect of inflation in the accounting records Accounting Equation Most basic tool for accountants: Equation 1: Assets = Liabilities + Owners’ Equity Asset – an economic resource that is expected to be of benefit in the future
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This note was uploaded on 06/13/2011 for the course ACCT 2001 taught by Professor Lowe during the Spring '08 term at LSU.

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ACCOUNTFINAL1 - Accounting 2001 Final Exam Review Sheet...

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