Accounting stuff Flashcards
1
Q
Sole Proprietorship
A
-Simple to
establish
• Owner-controlled
• Tax advantages
2
Q
Partnership
A
• Simple to establish • Shared control • Broader skills and resources • Tax advantages
3
Q
Corporation
A
Easier to transfer ownership • Easier to raise funds • No personal liability Easier to transfer ownership
4
Q
Three principal types of business activity
A
Financing
Operating
Investing
5
Q
Two primary sources of outside funding are
A
Borrowing Money
Selling shares of stock for cash
6
Q
Liabilities
A
Amounts owed
7
Q
Creditors
A
Party to whom amounts are owed
8
Q
Dividends
A
Payments to stockholders
9
Q
Dividends
A
Payments to stockholders
10
Q
Common Stock
A
describe the amount paid to stockholders for shares they purchase
11
Q
assets
A
Resources owned by a business
12
Q
Revenue
A
increase in assists or decrease in liabilities
13
Q
Accounts Receivable
A
Right to receive money from a
customer as the result of a sale in the future after money.
14
Q
Expenses
A
Cost of assets consumed or services used
15
Q
Expenses
A
Cost of assets consumed or services used
