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Definition
-business owned by 1 person
-simple to establish
-owner controlled
-tax advantages
-personablly liable for all debts |
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Definition
-business owned by 2+ people as partners
-simple to establish
-shared control
-broader skills & resources
-tax advantages
-liable for all depts |
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Definition
-business organized as separate legal entity, ownership divided into transferable shares of stock
-easier to transfer ownership
-easier to raise funds
-no personal liability |
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Definition
| the information system that identifies, records, and communicates the economic events of an organization to interested users |
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Definition
-managers who plan, organize & run a buisiness
-includes marketing managers, production supervisors, finance directors & company officers |
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Definition
Investors - to make decisions to buy, hold, or sell stock
Creditors (suppliers, bankers) - to evaluate risks of selling on credit or lending money
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Term
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Definition
Taxing Authorities (IRS) - to know if company complies with tax laws
Customers - if company will honor product warranties, etc
Labor Unions - want to know if owners have apility to pay increased wages/benefits
Regulatory Agencies - whether complany is operation within prescribed rules |
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Term
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Definition
Financing
Investing
Operating |
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Term
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Definition
| -report prepared by corporate management that presents financial information including financial statements, notes, a management discussion and analysis section, & an inependent auditor's report |
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Definition
| resources owned by a business |
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Term
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Definition
| A financial statement that reports the assets and claims to those assets at a specific point in time |
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Term
| Basic Accounting Equation |
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Definition
| Assets = Liabilities + Stockholders' Equity |
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Definition
Certified Public Accountant
-individual who has met certain criteria and is thus allowed to perform audits of corporations |
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Definition
| Term used to describe the total amount paid in by stockholders for the shares they purchase |
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Term
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Definition
| Payments of cash from corporation to its stockholders |
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Term
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Definition
| The cost of assets consumed or services used in the process of generating revenues |
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Definition
| Financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time |
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Definition
the debts and obligations of a business
-represent amounts owed to creditors |
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Definition
| the amount by which revenues exceed expenses |
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Definition
| the amount by which expenses exceed revenues |
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Definition
Management Discussion & Analysis
-ability to pay near-term obligations, ability to fund operations & expansion, its results of operations
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Definition
| the amount of net income retained in the corporation |
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Term
| Retained Earnings Statement |
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Definition
| A financial statement that summarizes the amounts & causes of changes in retained earnings for a specific period of time |
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Term
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Definition
| The increase in assets that result from the sale of a product or service in the normal course of business |
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Definition
Sarbanes-Oxley Act
-regulations passed in 2002 to try to reduce unethical corporate behavior |
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Term
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Definition
| A financial statement that provides the financial info abou the cash receipts & cash payments of a business for a specific period of time |
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Definition
| the owners' claim to assets |
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Term
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Definition
| -only record financial information |
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Term
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Definition
-split into one year periods
-identical |
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Term
| Economic Entity Assumption |
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Definition
| -company totally separated from owner |
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Term
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Definition
| -assume company will run forever |
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Term
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Definition
| the withdrawal of cash or other assets from a proprietorship for the personal use of the owner(s) |
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