Partnerships and Limited Liability Companies

equity account for each individual partner

claim the partnership has against a partner. The loss and distribution of that loss to the partner results in a debit balance in a partner's capital account.

company treated as a partnership or sole proprietorship for tax purposes but that limits the liability of its owners

process of paying liabilities, selling assets, and distributing remaining cash and assets to partners during a dissolution of the partnership

business entity owned by two or more people with the goal of generating a profit

formal document including an outline of how a partnership will work

business organization owned by one individual

first step of liquidating a partnership when the assets of the partnership are sold for cash

measure of how efficient a business is in generating revenue based on the number of employees

equity statement for an LLC used to illustrate the changes in the members' equity accounts during a given period

statement used to illustrate the changes in the partnership capital (equity) accounts during a given period

statement that provides a visual summary of the partnership liquidation