ACC 2301 Test Review

ACC 2301 Test Review - Ch 1 Review Answers 2 Three forms...

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Ch 1 Review Answers 2. Three forms of business - Sole Proprietor - Partnership - Corporation - Limited Liability Corp (LLC) 3. Forms of Bussiness 4. A business stakeholder is a person or entity that has an interest in the economic performance and well-being of a business. 5. Accounting is “an information system that provides reports to stakeholders about the economic activities and condition of a business.” 6. An asset is an investing activity: obtaining assets to operate a business. Borrowing creates a liability and is a financial activity.
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Revenue = Price X Quantity expense has a very specific meaning. It is an outflow of cash or other valuable assets from a person or company to another person or company. This outflow of cash is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the seller. Technically, an expense is an event in which an asset is used up or a liability is incurred. In terms of the accounting equation, expenses reduce owners' equity. The International
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This note was uploaded on 05/01/2008 for the course ACC 2301 taught by Professor Staff during the Spring '08 term at Texas State.

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ACC 2301 Test Review - Ch 1 Review Answers 2 Three forms...

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