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20 Cards in this Set
- Front
- Back
- 3rd side (hint)
Monetary unit assumption
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Only events that are measured in money can be recorded.
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Owners health cannot be measured.
|
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Economic Entity Assumption
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requires that activities of the owners be kept seperate drom that of the company.
|
Sally Reid, Sallys Boutique
|
|
Sole Proprietorship
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-Business owned by one person. He runs the show
|
Plumbing, autorepair shop
|
|
Partnership
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-like proprietorship except profits and responsibilities are divided by 2.
|
Xposure nights Ent
|
|
Corporation
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-Seperate Legal Entity
-Ownership divided into stocks -Stockholders share limited liability |
Pepsi, Mcdonalds
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Basic Accounting Equation
|
Assets+Liabilities+StockHolders Equity
|
|
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Assets
|
-Resources a company owns or controls.
-Puts money in your pocket |
|
|
Liabilities
|
are claims against assets that is, existing debts and obligations.
-Accounts Payable, Note Payable, Wages PAyable, Real Estate Payable |
|
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StockHolders Equity
|
-Total Assets minus Liabilities
-Revenues, Expenses, Dividend |
|
|
Cost Principle
|
companies record assets at thier cost
|
|
|
Monetary unit assumption
|
Only events that are measured in money can be recorded.
|
Owners health cannot be measured.
|
|
Economic Entity Assumption
|
requires that activities of the owners be kept seperate drom that of the company.
|
Sally Reid, Sallys Boutique
|
|
Sole Proprietorship
|
-Business owned by one person. He runs the show
|
Plumbing, autorepair shop
|
|
Partnership
|
-like proprietorship except profits and responsibilities are divided by 2.
|
Xposure nights Ent
|
|
Corporation
|
-Seperate Legal Entity
-Ownership divided into stocks -Stockholders share limited liability |
Pepsi, Mcdonalds
|
|
Basic Accounting Equation
|
Assets+Liabilities+StockHolders Equity
|
|
|
Assets
|
-Resources a company owns or controls.
-Puts money in your pocket |
|
|
Liabilities
|
are claims against assets that is, existing debts and obligations.
-Accounts Payable, Note Payable, Wages PAyable, Real Estate Payable |
|
|
StockHolders Equity
|
-Total Assets minus Liabilities
-Revenues, Expenses, Dividend |
|
|
Cost Principle
|
companies record assets at thier cost
|
|