com plete ver ifi ed solu tions +
r ationales (PASS
GUARANTEED)
types of business - answer sole proprietorship, partnership, corporation
sole proprietorship - answer single owner of a business
partnership - answer 2 or more owners of a business
corporation - answer ownership evidenced by shares of stock
balance sheet - answer current financial condition that summarizes the
assets, liabilities and owners' equity at a specific time point
income statement - answer how a business performs with in a period of
time; summarizes revenues and expenses
statement of retained earnings - answer analysis of retained earnings
with in time period; summarizes the income earned and dividends paid
, who uses the financial statements - answer creditors, current and
potential owners, suppliers, banks, government agencies, trade
associates
assets - answer future economic benefits
liabilities - answer obligations of a business
expenses - answer outflow of assets resulting from the sales of goods
and services
revenue - answer inflow of assets resulting from the sales of goods and
services
current asset - answer assets that are assumed to be consumed within
one year
current liability - answer obligation that will be satisfied within one year
working capital = - answer current assets-current liabilities