Types of Businesses

SRE SCF

$100 $100 $100

$200 $200 $200

$300 $300 $300

$400 $400 $400

$500

IS

$400

$100

$200

$300

$500

Balance Sheet

$100

$200

$300

$400

$500 $500 $500

Types of Businesses - $100

A business with one owner who assumes unlimited liability.

What is a Sole Proprietorship?

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Types of Businesses - $200

A business owned by two or more persons. Each person often is personally liable for debts of the business.

What is a Partnership?

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Types of Businesses - $300

A business that operates as separate from its owners. Typically owners do not assume unlimited liability.

What is a Corporation?

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Types of Businesses - $400

A business that has its stock bought and sold on exchanges.

What is a Public Company?

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Types of Businesses - $500

A business in which ownership is transferred by the private sale of stock.

What is a Private Company?

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Balance Sheet - $100

The basic accounting equation.

What is Assets = Liabilities + Stockholders’ Equity?

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Balance Sheet - $200

The wording used in the third line of a Balance Sheet’s heading to denote a point in time.

What is “At Month XX, 20XX”?

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Balance Sheet - $300

The account that represents the company’s total earnings and losses less all dividends occurring since the formation of the corporation.

What is Retained Earnings?

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Balance Sheet - $400

The order in which assets are listed on the Balance Sheet.

What is Liquidity?

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Balance Sheet - $500

Assumption that states that results of business activities should be reported in an appropriate monetary unit.

What is the Unit of Measure Assumption?

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IS - $100

The main equation for the Income Statement.

What is Revenues – Expenses = Net Income?

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IS - $200

The wording used in the third line of an Income Statement’s heading to denote a period of time.

What is “For the Period Ended Month XX, 20XX”?

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IS - $300

DAILY DOUBLE!!!

IS - $400

Formal label used to describe the costs of running a business.

What is “Expenses”?

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IS - $500

Formal label used to indicate the profit of the period.

What is “Net Income”?

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SRE - $100

The basic equation for the Statement of Retained Earnings.

What is Beginning Retained Earnings +Net Income – Dividends Declared = Ending Retained Earnings?

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SRE - $200

The wording used in the third line of the heading for the SRE to denote the period of time covered by the statement.

What is “For the Period Ended Month XX, 20XX”?

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SRE - $300

The number used for Beginning Retained Earnings.

What is the balance in the Retained Earnings account at the beginning of the period?

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SRE - $400

The number used for the Net Income amount in the SRE equation.

What is Net Income (Loss) as calculated on the Income Statement?

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SRE - $500

What it means to declare a dividend.

What is “formally promising to pay some of a company’s resources to its owners”?

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SCF - $100

“OIF!” The three categories used to classify business activities on the SCF.

What are Operating, Investing, and Financing?

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SCF - $200

Cash inflows are shown as ____ numbers and cash outflows are shown as ____ numbers.

What are positive and negative?

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SCF - $300

The subtotals of the three sections of the SCF sum to form this number.

What is the Net Change in Cash?

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SCF - $400

The equation to determine the End-of-Year Cash balance.

What is Beginning-of-Year Cash + Net Change in Cash = End-of-Year Cash?

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SCF - $500

The manner in which negative amounts are report in the financial statements.

What is “in parentheses”?

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Daily Double Specify Your Wager!

IS ---

The information conveyed by the lines in an Income Statement’s heading.

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What is Who (name of business), What (title of the statement), When (accounting period), and Other (unit of measure).