Reviewer for Financial Accounting and Reporting

The Accounting Equation

• Assets = Liabilities + Equity

• Assets = Liabilities - Equity

• Equity = Liabilities + Assets

• Liabilities = Equity + Assets

__________ is an information system that identifies, records, and communicates the economic events of an organizationto interested users.

Economic events are also called ______

Managers who plan, organize, and run the business

• Internal Users

• External Users

________ provides internal reports to help users make decisions about their companies

• Financial Accounting

• Managerial Accounting

• Human Resource Management

• Business Management

_________ are individuals and organizations outside a company who want financial information about the company.

• Internal Users

• External Users

A business organized as a separate legal entity. Also enjoys limited liability.

• Proprietorship

• Partnership

• Corporation

A business owned by one person is called ___________. The owner is also personally liable for all debts of the business.

• Proprietorship

• Partnership

• Corporation

A business owned by two or more persons associated as partners.

• Proprietorship

• Partnership

• Corporation

Something that the business OWNS