Financial Accounting Felan TXST Exam WITH PERFECT ANSWERS 2024

Sole Proprietorship correct answers A business that is owned and run by one person and there is no legal distinction between the owner and the business entity. Partnership correct answers A form of business operation between two or more individuals who share management and profits. Corporation correct answers A company or group of people authorized to act as a single entity and recognized as such in law. Limited Liability Company (LLC) correct answers a form of business ownership that offers both limited liability to its owners and flexible tax treatment dividends correct answers earnings distributed to stockholders as a return on investment What has a natural debit balance on the balance sheet? correct answers Assets What has a natural credit balance on the balance sheet? correct answers Liabilities and stockholders equity What is the Current Ratio, and what does it measure? correct answers Current Assets/Current liabilities. It measures how many times you can cover your liabilities due in a year. What has a natural credit balance on the Income Statement? correct answers Revenues What has a natural debit balance on the income statement? correct answers Expenses amortization correct answers Depreciation on intangible assets Noodlecake issued 3 $100 gift cards correct answers debit cash for $300 credit deferred revenue $300 (revenue to be generated later) What is the net profit margin ratio? correct answers Net income/Revenues