Phillips Chap 1class slides

Phillips Chap 1class slides - 1-1Business...

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Unformatted text preview: 1-1Business FormsPartnershipsBusiness organizations owned by two or more people. Each partner often is personally liable for partnership debts that cannot be paid.CorporationsOperate a business separate from their owners. Owners of corporations (stockholders) are not personally responsible for debts of the corporation.Sole ProprietorshipBusiness organizations owned by one person. The owner often is personally liable for business debts that cannot be paid.1-2Organizational FormsCorporationsPublic CompaniesHave their stock bought and sold on stock exchanges.Private CompaniesHave their stock bought and sold privately.1-3Financial StatementsReports that summarize the financial results of business activities.1-4Financial StatementsSet-upAll financial statements start with a heading that answers three questions:WhoWhatWhen1-5The Financial StatementsThe results of that companys business activities onlyUnit of Measure Assumption Results reported in US dollars ($) Separate Entity Assumption 1-6Financial StatementsBalance SheetIncome StatementStatement of Retained EarningsStatement of Cash Flows1-7Balance SheetReports at a POINT in time1.Assets: Controlled, have Value, & provide Future Benefits2.Liabilities: Owed to Creditors (external parties)3.Equity: Owners Claim on Resources1-8The Balance SheetSet-upThe balance sheet contains the three interrelated parts: assets, liabilities, and stockholders equity....
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Phillips Chap 1class slides - 1-1Business...

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