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39 terms

accounting1

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sole proprietorship
simple to establish, owner controlled, tax advantages, Simple to set up and maintains control with founder
partnership
simple to estable, shared control, croader skills and resources, tax advantages, Shared control, tax advantages, increased skills and resources.
corporation
easier to transfer owndership, easier to raise funds, no personal liability, Easier to transfer ownership and raise funds, no personal liability.
internal revenue service
Trying to determine whether the company complied with tax laws.
chief financial officer
Trying to determine whether the company should employ debt or equity financing.
creditors
Trying to determine whether the company can pay its obligations.
marketing managers
Trying to determine whether a marketing proposal will be cost effective.
investors in common stock
Trying to determine whether the company's net income will result in a stock price increase.
income tax expense
income statement
inventories
balance sheet
accounts payable
balance sheets
retained earnings
balance sheets
property, plant, equipment
balance sheets
net sales
income statement
cost of goods sold
income statement
common stock
balance sheets
receivables
balance sheets
interest expense
income statement
basic accounting equation
assets=liabilities + stock holders equity
cash
asset
accoutns receivable
asset
common stock
stockholders equity
notes payable
liability
other assets
assets
other liabilities
liabilities
inventories
assets
income taxes payable
liabilities
property, plant, equipment
assets
retained earnings
stockholders equity
accounts payable
liability
SOX 2002
top management must certify accuracy of financial information, severe penalites for fraud, increased the independence of outside auditors, increased oversight rold of BOD
partnerships and sole propierities
reduced legal liability for investors
balance sheet
presents info at a specific point in time, reports assets, liabilites, and stockholder equity
regularatory authorities
external users
management
internal
taxing authorities
external
present creditors
external
investing section
section of a cash flow statement indicates the cash spent on new equipment during the past accounting period
notes to the financial statement
The element of a corporation's annual report that describes the corporation's accounting methods is the