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Key Terms
More Key Terms
Different Types of Business Ownership
Using T Accounts
More T Accounts
100

An accounting device used to analyze transactions.



T account

100

A business owned and operated by one person.

Sole proprietorship


100

The type of business ownership that has the owner being responsible for all aspects of the business.

Sole Proprietorship

100

The left side of the "T"

Assets

100

The right side of the "T"

Liabilities + Owner's Equity

200

A decreased in competition and sharing time commitment are advantages of this type of business ownership

Partnership

200

An amount recorded on the left side of an account.



Debit

200

This type of business ownership is difficult to close down when compared to a sole proprietorship.

Partnership

200

The right side of the T account

credit side

200

The left side of the T account

debit side

300

The side of an account that is increased is called the __________of the account.  

normal balance

300

A list of accounts used by a business.

Chart of accounts

300

An advantage of this type of business ownership is that the entity continues to exist after the death of its owners.

Corporation

300
The number of accounts affected by each transaction.

Two accounts

300

_____________ increases owner's equity.

Revenue

400

Dual taxation and the value of the company shares can change depending on changes in the stock market are examples of disadvantages for this type of business ownership

Corporation

400

This type of business ownership is expensive, requires following a lot of rules and can be a failed venture despite doing nothing wrong at your place of business

Franchise

400

The agreement of this type of business ownership lasts 5-10 years and must be renewed in order to continue.

Franchise

400

Debits must equal _______ for each transaction.

credits

400

Credits must equal _______ for each transaction.

Debits
500

Amounts to be received in the future due to the sale of goods or services.



Accounts Receivable

500

a corporate structure that protects its owners from being personally pursued for repayment of the company's debts or liabilities.

Limited Liability Company (Hybrid business ownership)

500

This hybrid type of business ownership in general, does not pay any income taxes. Instead, the corporation's income and losses are divided among and passed through to its shareholders. 

S Corporation

500

The four questions necessary to analyze transactions

1. Which accounts are affected?

2. How is each account classified?

3. How is each classification changed?

4. How is each amount entered in the accounts?

500

The words that make up the acronym DEALER

Dividends

Expenses

Assets

Liabilities

Equity

Revenue