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Business Structures and Financial Management: Advantages, Disadvantages, and Key Terms, Quizzes of Financial Accounting

Definitions and explanations of various business structures, their advantages and disadvantages, and key financial management terms. Topics include partnerships, sole proprietorships, corporations, financing, investing, operating activities, revenue, expenses, net income, net loss, balance sheet, income statement, retained earnings, cash flow, and various financial ratios.

Typology: Quizzes

Pre 2010

Uploaded on 12/09/2009

marisarose90
marisarose90 🇺🇸

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TERM 1
Advantages and disadvantages of a
partnership
DEFINITION 1
advantages: taxes disadvantages: personal liability
TERM 2
Advantages and disadvantages of a sole
proprietorship
DEFINITION 2
advantage: tax disadvantage: personal liability
TERM 3
Advantages and disadvantages of a
corporation
DEFINITION 3
advantage: lower legal liability disadvantage: taxes
TERM 4
3 business activities
DEFINITION 4
financing investing operating
TERM 5
2 ways of financing
DEFINITION 5
borrowing from creditors selling stocks to investors
pf3
pf4
pf5

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Advantages and disadvantages of a

partnership

advantages: taxes disadvantages: personal liability

TERM 2

Advantages and disadvantages of a sole

proprietorship

DEFINITION 2

advantage: tax disadvantage: personal liability

TERM 3

Advantages and disadvantages of a

corporation

DEFINITION 3

advantage: lower legal liability disadvantage: taxes

TERM 4

3 business activities

DEFINITION 4

financing investing operating

TERM 5

2 ways of financing

DEFINITION 5

borrowing from creditors selling stocks to investors

borrowing from creditors

notes payable and bonds payable

TERM 7

selling stock to

investors

DEFINITION 7

common stock

TERM 8

investing activities

DEFINITION 8

purchase of resources (assets) needed to operate a business.

assets include: land building equipment cash investments in

debt or equity securities of another company

TERM 9

Revenue

DEFINITION 9

increase in assets resulting in the sale of a product or service

TERM 10

expense

DEFINITION 10

cost of assets consumed or services used in the process of

generating revenues

Cash flow

shows sources of cash during a period and how the cash was

used. shows operating, investing, and financing activities.

TERM 17

A classified balance sheet

includes

DEFINITION 17

current assets long term investments property, plant, and

equipment intangible assets current liabilities long term

liabilities stockholders equity

TERM 18

Current assets

DEFINITION 18

expected to be converted to cash in less than one year ex.

cash, short term investments, receivables, inventories,

prepaid expenses

TERM 19

Long term investments

DEFINITION 19

not expected to be converted to cash within one year ex.

investments of stocks and bonds of other companies

TERM 20

PPE

DEFINITION 20

have long useful lives and used in the daily operation of the

business ex. land, building, machinery, delivery equipment,

and furniture and fixtures

intangible assets

rights, privileges, and competitive advantages ex. franchises,

patents, copyrights, and trademarks

TERM 22

Current liabilities

DEFINITION 22

supposed to be paid within the year ex. accounts payable,

wages payable, bank loans payable, interest payable, taxes

payable

TERM 23

Long term liabilities

DEFINITION 23

expected to be paid after one year ex. bonds payable,

mortgages payable, long term notes payable

TERM 24

Stockholders Equity

DEFINITION 24

the stockholder's net claim on the companies total assets

common stock and retained earnings

TERM 25

earnings per share equation

DEFINITION 25

(net income- preferred stock dividends)/ average common

shares outstanding