Dina Ventura

Per 2
1) Define and write down what they do
-IRS 
The Internal Revenue Service (IRS) is a U.S. government agency responsible 
for the collection of taxes and enforcement of tax laws.The IRS also 
handles corporate, gift, excise and estate taxes. People colloquially refer 
to the IRS as the "tax man." 
 
-SEC 
The U.S. Securities and Exchange Commission (SEC) is an independent 
federal government agency responsible for protecting investors, 
maintaining fair and orderly functioning of the securities markets, and 
facilitating capital formation. 
 
-GAAP 
The Principles of GAAP Generally accepted accounting principles, or GAAP 
for short, are the accounting rules used to prepare and standardize the 
reporting of financial statements, such as balance sheets, income 
statements and cash flow statements, for publicly traded companies and 
many private companies. 
 
-FASB 
The Financial Accounting Standards Board is a private, non-profit 
organization standard-setting body whose primary purpose is to establish 
and improve Generally Accepted Accounting Principles within the United 
States in the public's interest. 
 
-AICPA 
The AICPA (American Institute of Certified Public Accountants) is the 
association that develops and scores the Uniform Certified Public 
Accountants examination. 
 
2) Name the 3 Financial Documents 
They are: 
(1) balance sheets; (2) income statements; (3) cash flow statements; and (4) 
statements of shareholders' equity. 
Formula:  
Assets = Liabilities + Equity, and (3) the Cash Flow Statement, Statement of 
Cash Flows. The Statement of Cash Flows is one of the 3 key financial 
statements that reports the cash generated and spent during a specific 
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time period, it acts as a bridge between the income statement and 
balance sheet. 
Company Information: 
The balance sheet shows the company's resources (assets) and funding for 
those resources (liabilities and stockholders equity) 
 
3) 4 Types of business Ownership 
Sole Proprietorship, Partnership, Corporation, and Limited Liability 
Company 
 
Sole proprietorships​ have several advantages over other business 
entities. They are easy to form, and the owners enjoy sole control of the 
business profits. However, they also have disadvantages, the biggest of 
which being that the owner is personally liable for all business losses and 
liabilities. 
 
Advantages of a General Partnership:​ Businesses as partnerships do not 
have to pay income tax; each partner files the profits or losses of the 
business on his or her own personal income tax return. This way the 
business does not get taxed separately. Easy to establish.Disadvantages 
of a partnership include that: the liability of the partners for the debts of 
the business is unlimited. each partner is 'jointly and severally' liable for 
the partnership's debts; that is, each partner is liable for their share of the 
partnership debts as well as being liable for all the debts. 
 
Advantages. Generally, a ​corporation's​ shareholders are not liable for any 
debts incurred or judgments handed down against the corporation. 
Shareholders only risk their equity in the corporation. Corporations may 
be able raise additional funds by selling shares in the corporation. 
 
LLCs​ are similar to corporations in that they offer limited liability 
protection to its owners. LLCs also have fewer corporate formalities and 
greater tax flexibility. However, one of the disadvantages is that profits 
may be subject to self-employment taxes. Compared to limited 
partnerships. 
 
4) What are the steps in the Accounting Cycle 
These steps are: (1) analyzing the transactions as they occur, (2) recording 
them in the journals, (3) posting debits and credits from journal entries to 
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the general ledger, (4) adjusting the assets with a trial balance, (5) 
preparing financial statements, and (6) closing the temporary accounts. 
 
5) What are the 6 types of Accounts​ ( Example Asset) 
There are five main types of accounts in accounting, namely assets, 
liabilities, equity, revenue and expenses. ... Asset accounts, for example, 
can be divided into cash, supplies, equipment, deferred expenses and 
more. Equity accounts may include retained earnings and dividends. 
 
 
 
 
 
6) Make the T chart for each type of account 
 

 
 
 
5) Write down the T charts for 
T-Charts are a type of chart, a graphic organizer in which a student lists 
and examines two facets of a topic, like the pros and cons associated with 
it, its advantages and disadvantages, facts vs. opinions, etc.