1. AICPA American Institute of Certified Public Accountants SEC Securities & Exchange Commission FASB Financial Accounting Standards Board

2. FASB Financial Accounting Standards Board

3. GAAP Generally Accepted accounting principles

4. Three types of Businesses

5. Cost Principle

6. Going-concern principle

7. Entity Concept

8. Accounting Equation

9. Principle that requires the assumption that the entity will remain in operation for the foreseeable future

10. Each entity is an organization that stands apart as a separate economic unit. We do this to not confuse the affairs with those of other entities.

11. Assets = Liabilities + Owner’s Equity

12. Accounting guidelines, formulated by FASB, that govern how accountants measure, process, and communicate financial information

13. Organization PRIMARILY responsible for accounting standards

14. Work together to formulate accounting standards

15. Sole Proprietorship Partnership Corporation

16. Principle that requires an item to be recorded at the price actually paid