Chapter1 - (10 min.) S 1-3 a. Corporation,...

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(10 min.) S 1-3 a. Corporation, Limited-liability partnership (LLP) and Limited-liability company (LLC). If any of these businesses fails and cannot pay its liabilities, creditors cannot force the owners to pay the business’s debts from the owners’ personal assets. b. Proprietorship . There is a single owner of the business, so the owner is answerable to no other owner. c. Partnership . If the partnership fails and cannot pay its liabilities, creditors can force the partners to pay the business’s debts from their personal assets. A partnership affords more protection for creditors than a proprietorship because there are two or more owners to share this liability. (5-10 min.) S 1-5 a. Historical cost principle b. Stable-monetary-unit assumption c. Entity assumption d. Historical cost principle
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(10-15 min .) E 1-17A Req. 1 (Amounts in millions) Assets = Liabilities + Stockholders’ Equity $290 $150 490 310 150 Total $930 = $460 + $470 Req. 2 Resources to work with Req. 3 Amount owed to creditor s Req. 4 Actually owned by company stockholders (10-20 min.) E 1-21A Ellen Samuel Banking Company Balance Sheet ( Amounts in millions ) January 31, 2010 ASSETS LIABILITIES Cash $ 2.1 Current liabilities $151.1 Receivables 0.9 Long-term liabilities 2 .8 Investment assets 169.6 Total liabilities 153.9 Property and equipment, net 1.9 STOCKHOLDERS’ EQUITY Other assets 14.4 Common stock 14.0
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This note was uploaded on 09/16/2011 for the course ACG 2021 taught by Professor Hornik during the Spring '08 term at University of Central Florida.

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Chapter1 - (10 min.) S 1-3 a. Corporation,...

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