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Unformatted text preview: E1-13a.Limited Liability Company, Limited Liability Partnership, Corporation: the business, not the owner, is liable for debts, so owners only lose the amounts they have invested in the business.b.Proprietorship: Beard would be the sole owner of the company, so she would have the most freedom.c.Partnership: Each partner is personally liable for all the partnerships’ debts, so creditors could force the individuals to pay the partnership’s debts.E1-14a.Reliability Principleb.Stable-Monetary Unit Conceptc.Entity Conceptd.Cost PrincipleE1-15AssetsLiabilitiesOwner’s EquityApple$17$7$10PepsiCo321814FedEx231112Apple has the strongest financial position because it has the least amount of liabilities when compared to assets.E1-161.Assets = Liabilites + Owners Equity($147 million + $206 million + $58 million) = ($154 million + $148 million) + Owners Equity$411 million = $302 million + Owners Equity2.$411 million worth of resources to work with3.$302 million owed to creditors4.$109 million for stockholdersE1-20Maxwell Banking Company1Balance Sheet (Adapted)December 31, 2008(in millions)...
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This note was uploaded on 08/30/2011 for the course ACG 2021 taught by Professor Hornik during the Fall '08 term at University of Central Florida.
- Fall '08
- Financial Accounting