An entity whose assets, liabilities, income and expenses are centered or owned by itself being a legally separate entity from its owners.

Increases to owner’s equity by adding investments by the owner

The very first investment of the owner to the company

Which of the following pertains to business entity concept?

Which of the following are the major types of business organizations?

How many are considered owner(s) in a sole proprietorship?

How are owner(s) in a sole proprietorship called?

Are those accounts that are presented under the assets portion of the SFP but are reductions to the company’s assets.

These are the accounts included in the Income Statement

Other term for Statement of Comprehensive Income

Example of these are cash, accounts receivable, and inventory

Are assets that cannot be realized (collected, sold, used up) one year after year-end date. Examples include Property, Plant and Equipment (equipment, furniture, building, land), long term investments, etc.

Amount of goods bought during the current accounting period.

Account used to record merchandise returned by the

company to their suppliers.

This account is used to record transportation costs of merchandise purchased by the company.

Sales Less Cost of Good Sold is equal to?

Liability = Asset + Equity

The process of bringing a business to an end and distributing its assets to claimants.

A statement that compares the cash balance on a company’s balance sheet to the corresponding amount on its bank statement.