Limited resources, unlimited liability, limited expertise, limited life and obligation to follow the laws of both federal government and state and city government in which a business is formed.
List 5 disadvantages to a Sole Proprietorship.
Ease of formation, total control by the owner, profits are not shared.
List 3 advantages to a sole proprietorship.
True or False: unlimited liability means the owner is totally responsible for the liabilities of a business. Personal assets such as a car could be claimed to cover the business's liabilities.
d. all of the above
Which of the following is an example of a service business: a. Hair Salon, b. Auto Repair Shop, c. Daycare, d. all of the above
Assets = Liabilities + Owner's Equity
The accounting equation is most often stated as:
True or False: In the accounting equation, if one account is increased, another account on the same side of the equation must be decreased.
True or False: When changes are made on only one side of the accounting equation, the equation is no longer in balance.
When cash is received from sales, the owner's equity: A. Decreases B. Increases C. Remains the same.
When services are sold on account, the owner's equity: A. Decreases B. Increases C. Remains the Same
When cash is paid for an expense, the owner's equity: A. Decreases B. Increases C. Remains the Same