BMGT 220 Study Guide - Final Guide: Bank Reconciliation, Trial Balance, List Of The Shield Episodes

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 220
• Professor: Outlaw

Document Summary

Accounting: an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization"s business activities. Measurement/cost principle: accounting info based on actual cost. Expense recognition/matching principle: expenses reported in the same period as the revenues that were earned as a result of those expenses. Time period: life of a company is divided into time periods. Business entity: business accounted for separately from owner/other entities. Materiality: only info that would influence the decision of a reasonable person need be disclosed. Cost-benefit: only info w/ benefits of disclosure greater than the costs of providing it need be disclosed. Sole proprietorship: owned by one person, not corporation, separate entity for accounting, business taxed. Partnership: two or more owners, for profit, jointly liable for tax, not legally separate from owner. Corporation: separate legal entity, owners are shareholder or stockholders, business taxed, limited liability, unlimited life. Assets: resources a company owns. controls, w/ current/future benefits.