Matching Last Test for Mod F

Building, equipment, cash

(B) assets

The total amount paid in by stockholders

(J) (paid-in) capital

Money borrowed to purchase merchandise on credit

(A) accounts payable

The medical office purchases office supplies, medications, utilities and so on

(A) accounts payable

Resources owned by a business

(B) assets

Business organized under state law as a separate legal entity, with ownership divided into transferable shares of stock

(C) corporation

Most large companies: Wal-Mart, general Motors, general Electric, Intel, Apple, etc.

(C) corporation

If an office building is bought for $700,000, this is what the amount you pay for it is called

(D) cost

Personal living expenses are kept separate from expenses of the business

(E) economic entity assumption

Creditors, mortgage, etc.

(F) liabilities

The value determined by the market for similar buildings / properties at the time of sale

(G) market value

One of the two main assumptions in GAAP, requiring that transaction data can only be expressed in terms of money

(H) monetary unit assumptions

Money borrowed (loans) to purchase major assets

(I) note payable

Cash or othe rassets from stockholders in exchange for capital stock

(J) (paid-in) capital

Business owned by two or more persons; each person is generally personally liable for the debts of this entity

(K) partnership

law firms, medical practices, CPA's

(K) partnership

A business owned by one person who is often the manager/ operator of the business; the owners net worth or equity (which consists of the amount by which the fair market value of all assets exceed liabilities)

(L) proprietorship

The section of the balance sheet is determined by three items; revenues, expenses, and dividends

(M) retained earnings

The ownership claim on total assets

(N) stockholders equity

The quality of service provided, the age and health of the owner, and employees morale are not included because they cannot be quantified in terms of money

(N) stockholders equity