Organizations and rules that govern accounting

Partnership

A business in which two or more persons combine their assets and skills

Corporation

A business organized under state law that is a separate legal entity.

Sole Proprietorship

A business owned by one person

Limited Liability Company (LLC)

A company in which each member is only liable for his or her own actions.

Generally Accepted Accounting Principles (GAAP)

Accounting guidelines, currently formulated by the Financial Accounting Standards Board (FASB); the main U.S. accounting rule book.

Economic Entity Assumption

An organization that stands apart as a separate economic unit.

Faithful Representation

Providing information that is complete, neutral, and free from error.

Financial Accounting Standards Board (FASB)

The private organization that oversees the creation and governance of accounting standards in the United States.

Securities and Exchange Commission

US government agency which oversees the U.S. financial market.