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
