Lenoxk.ACC502.M1-A

Lenoxk.ACC502.M1-A - 14 16 16 17 (D) Yes Natalie will...

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1 Name Lenox, K. D. Chapter 1 Continuing Cookie Chronicle Section ACC 502 (0101) Date 8/10/2010 Cookie Creations 1 (a) Natalie should consider using the sole proprietorship form of business. 1 2 Advantages: owner takes all the profit, and it is easy to get started even with little capital. 2 3 Disadvantages: Owner faces unlimited liability, and faces a higher tax payout. 3 4 Partnership: 4 5 Advantages: Dual ownership, and more room for creativity. 5 6 Disadvantages: The benefits are shared with other partners, and each partner is liable for an6 7 Corporation: 7 8 Advantages: Share-holders faces limited liability, and beneficial tax bracket. 8 9 Disadvantages: Requires a lot of capital to get started and more time to get it running. 9 10 10 11 (b) Yes natalie will need accounting information. 11 12 Bank and income statements, and balance sheets monthly basis. The balance sheet will 12 13 be needed on a daily basis. 13 14 15 ( C) Cookie Creation will need the company's new bank account, stocks, loans, automobile etc.
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Unformatted text preview: 14 16 16 17 (D) Yes Natalie will require a separate bank account created just for her business, so she will be 17 18 able to easily track and manage her business transactions properly, and separate it from her 18 19 personal finances. 19 20 20 21 (E) Natalie should be able to use her car for her business, but record her millage when ever she 21 22 is on a business trip, so that she can calculate the gas used and make record that on her 22 23 daily balance sheet for account expenses. 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 1 2 Name Chapter 1 Continuing Cookie Chronicle Concluded Section Date Cookie Creations 1 (c) 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 (d) 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 2...
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This note was uploaded on 11/20/2010 for the course ACCT 170 taught by Professor Larryschiffres during the Spring '09 term at Yale.

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Lenoxk.ACC502.M1-A - 14 16 16 17 (D) Yes Natalie will...

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