Corporations
When starting a corporation, what would be an example of an organizational expense?
Ex) legal fees, promoters’ fees, and payments for a charter
The price assigned per share by the corporation is called the?
a)Par value
b)Market Value Share
c)Premium Value
d)Discount Value
A) Par value
An unincorporated association of two or more people to pursue a business for profit as co-owners
What type of users are not directly involved in operating the company?
Internal or external
EXTERNAL
What makes an asset or liability Long Term versus Short Term?
used/paid within 1 year
What account do we show the change to retained earnings in?
Statement of cash flows, statement of stockholders’ equity, multi-step income statement
Statement of stockholders' equity
What is the price at which a stock is bought and sold called?
Par value
Market value share
Premium Value
Discount Value
Market value share
Does a partnership agreement need to be in writing to be binding?
NO
Give an example of an external user?
Suppliers, banks, customers, investors, tax authorities
What is an example of a plant asset?
Equipment, building, land
Cumulative net income (or loss) not distributed as dividends to its stockholders is called
Net income, retained earnings, remaining earnings
If cash is received beyond the par value, what account is the difference recorded to?
Paid in Capital
A partnership that has general and limited partners, where the limited partners have no personal liability beyond the amounts they invest in the partnership is a...
Limited partnership, General Partnership, Limited Liability Company
Limited partnership
The ability to meet short-term obligations and efficiently generate revenues is called
Liquidity and efficiency, solvency, creditworthiness, profitability
Liquidity and efficiency
If a company has liabilities of $250 and equity of $300, what are the total assets the company has?
$550
What are dividends?
Common stock dividend distributable account is a what type of account?
Asset, Liability, Equity, Contra Asset
Equity Account
Owner’s withdrawals are…
Closed to partners capital account, closed to income summary, permanent account that is not closed, credited with partner’s share of net income
Closed to partners capital account
Give an example of an internal user of accounting information?
individuals who manage and operate the company
What are the 3 main financial statements we've discussed and what order are they prepared in?
Income statement
statement of owners equity
Balance sheet
What is the starting point of the statement of retained earnings?
Retained Earnings, Prior Year
The amount of income earned per share of outstanding common stock is called
Share dividends, Return on shares, earnings per share
Earnings per share
How should income or loss be allocated in a partnership if there is no agreement?
EQUALLY
The communication of financial information useful for making investment, credit, and other business decisions is.....
Profitability, Ratio Analysis, Economic Reporting, Financial Reporting
Financial Reporting
Assets = ______ + equity
liabilities