front 1 A business organized by one or more people who invest in the business and act as a single organization | back 1 corporation |
front 2 A business with the same or similar products, services, customer service, inventory, operations, and marketing plans as another business | back 2 franchise |
front 3 A business owned, operated, and managed by one person | back 3 sole proprietorship |
front 4 A business owned, operated, and managed by two or more people | back 4 partnership |
front 5 If an owner desires complete control of the business, which form of organization is best? | back 5 sole proprietorship |
front 6 If the owner of a sole proprietorship dies, what happens to the business? | back 6 The business closes. |
front 7 A registered agent is | back 7 the person who receives legal information about the business |
front 8 Shares represent _____. | back 8 ownership in a corporation |
front 9 Articles of incorporation must be filed in the _____ in which the corporation plans to operate. | back 9 state |
front 10 The process of collecting and reporting financial information to internal and external users is | back 10 accounting |
front 11 Any cash or items owned by the business that have worth | back 11 assets |
front 12 A form of payment whereby a customer buys now, receives the goods or services, and pays later | back 12 credit |
front 13 The U.S. standards for organizing and reporting financial information to maintain consistency | back 13 Generally Accepted Accounting Principles (GAAP) |
front 14 Parties involved in transactions must act honestly refers to which GAAP principle | back 14 Principle of Good Faith |
front 15 Organizations must apply consistent standards in financial reporting refers to which GAAP principle | back 15 Principle of Consistency |
front 16 accounting equation | back 16 assets = liabilities + equity |
front 17 Money a business owes to creditors for credit purchases | back 17 accounts payable |
front 18 Money owed to the company | back 18 accounts receivable |
front 19 Amounts owed to creditors | back 19 liabilities |
front 20 The formula that represents straight line depreciation | back 20 (asset cost - resale value)/useful life |
front 21 A formal request to examine and review financial information and documents | back 21 audit |
front 22 The amount of money used to purchase or manufacture merchandise for sale | back 22 cost of goods sold |
front 23 Gross profit on sales | back 23 sales minus the cost of goods sold |
front 24 Profit before taxes | back 24 gross profit on sales minus expenses |
front 25 Income received from the sale of goods or services | back 25 revenue |
front 26 Financial instruments sold by corporations or municipalities to fund projects | back 26 bonds |
front 27 Security in the event the company does not repay the loan | back 27 collateral |
front 28 Obtaining a loan or selling bonds with a promise to pay back borrowed cash with interest | back 28 debt financing |
front 29 Raising money by selling shares to investors | back 29 equity financing |
front 30 A percentage the lender charges to loan money | back 30 interest |
front 31 Money stockholders invested in the company | back 31 paid-in capital |
front 32 A financial statement used to measure the changes in stock ownership and retained earnings | back 32 statement of stockholders’ equity and retained earnings |
front 33 Only selling bonds to fund an expansion project is considered ____ financing. | back 33 debt |
front 34 Common and preferred stock is any example of | back 34 equity |
front 35 Paid-in capital on the statement of stockholders’ equity and retained earnings is the ________. | back 35 money stockholders invested in the company |
front 36 __________ can sell bonds. | back 36 Municipalities and corporations |
front 37 Paying rent on a company-owned building | back 37 operating outflow |
front 38 Selling land for a profit. The financial transaction is considered a(n) ____ on the statement of cash flows. | back 38 investing inflow |
front 39 Selling bonds to an investor. The financial transaction is considered a(n) ____ on the statement of cash flows. | back 39 financing inflow |
front 40 A corporation receives cash from a customer to purchase a product. The financial transaction is considered a(n) ____ on the statement of cash flows. | back 40 operating cash inflow |
front 41 A corporation pays rent on their building. The financial transaction is considered a(n) ____ on the statement of cash flows. | back 41 operating cash outflow |