accounting
Chapter 1 – Assignment
Part 1
BE 1-1 (a) SP - Shared control, tax advantages, increased skills and resources (b) P – Simple to set up and maintains control with owner (c) C – Easier to transfer ownership and raise funds, no personal liability
BE 1-2
1. Trying to determine whether the company complied with tax laws. (E) Internal Revenue Service
2. Trying to determine whether the company can pay its obligations. (C) Creditors
3. Trying to determine whether an advertising proposal will be cost-effective. (B) Marketing Manager
4. Trying to determine whether the company’s net income will result in a stock price increase. (A) Investors in common stock
5. Trying to determine whether the company should employ debt or equity financing. (D) Chief Financial Officer Do It! 1-1
Identify each of the following organizational characteristics with the organizational form or forms with which it is associated.
(A) Easier to transfer ownership
Corporate
(B) Easier to raise funds
Corporate
(C) More owner control
Sole Proprietor
(D) Tax advantages
Sole Proprietorship, Partnership
(E) No person legal liability
Corporation
Do it! 1-2
Classify each item as an asset, liability, common stock, revenue, or expense.
(A) Issuance of ownership shares. Common Stock
(B) Land purchased. Asset
(C) Amounts owed to suppliers. Liability
(D) Bonds payable. Liability
(E) Amount earned from selling a product. Revenue
(F) Cost of advertising. Expense
Part 2
Ex 1-8
(A) An expression about whether financial statements conform with generally accepted accounting principles. – 8 Auditors opinion
(B) A business that raised money by issuing shares of stock. – 1 Cooperation
(C) The portion of stockholders’ equity that results from receiving cash from investors. – 6 Common Stock.
(D) Obligations to suppliers of goods. – 7 Accounts payable
(E) Amounts due from customers. – 3 Accounts Receivable
(F) A
Part 1
BE 1-1 (a) SP - Shared control, tax advantages, increased skills and resources (b) P – Simple to set up and maintains control with owner (c) C – Easier to transfer ownership and raise funds, no personal liability
BE 1-2
1. Trying to determine whether the company complied with tax laws. (E) Internal Revenue Service
2. Trying to determine whether the company can pay its obligations. (C) Creditors
3. Trying to determine whether an advertising proposal will be cost-effective. (B) Marketing Manager
4. Trying to determine whether the company’s net income will result in a stock price increase. (A) Investors in common stock
5. Trying to determine whether the company should employ debt or equity financing. (D) Chief Financial Officer Do It! 1-1
Identify each of the following organizational characteristics with the organizational form or forms with which it is associated.
(A) Easier to transfer ownership
Corporate
(B) Easier to raise funds
Corporate
(C) More owner control
Sole Proprietor
(D) Tax advantages
Sole Proprietorship, Partnership
(E) No person legal liability
Corporation
Do it! 1-2
Classify each item as an asset, liability, common stock, revenue, or expense.
(A) Issuance of ownership shares. Common Stock
(B) Land purchased. Asset
(C) Amounts owed to suppliers. Liability
(D) Bonds payable. Liability
(E) Amount earned from selling a product. Revenue
(F) Cost of advertising. Expense
Part 2
Ex 1-8
(A) An expression about whether financial statements conform with generally accepted accounting principles. – 8 Auditors opinion
(B) A business that raised money by issuing shares of stock. – 1 Cooperation
(C) The portion of stockholders’ equity that results from receiving cash from investors. – 6 Common Stock.
(D) Obligations to suppliers of goods. – 7 Accounts payable
(E) Amounts due from customers. – 3 Accounts Receivable
(F) A