Accounting 211 fully solved

Accounting 211 fully solvedShare of common stock - correct answer certificates of ownership in a corporation Dividends - correct answer earnings of a corporation distributed to owners Fiscal Year - correct answer a year in the life of a business, does not have to match a calendar year Principal - correct answer amount a loan is made for Interest - correct answer cost of borrowing money Sole Proprietorship - correct answer single owner of a business Parntership - correct answer owned by two or more people Sole Proprietorship/Partnership - correct answer Advantages- Easy to start, not required to make financial information public Disadvantages- Unlimited liability for the owner, owner is personally responsible fro all business decisions Corportations - correct answer legal entity separate from its owners Advantages- Limited liability for owners, can only lose money invested in business, can enter into contract like individuals, investors can diversify financial risk. Disadvantages- Double taxation, Conflicts between owners and managers The Four financial Statements - correct answer 1) Balance Sheet 2) Income Statement 3) Statement of changes in Shareholders' Equity