List three forms of business organizations. What are the advantages and disadvantages of each?
What will be an ideal response?
We begin with the most common, the sole proprietorship. This has the advantage of easy start-up and that the owner is his or her "own boss." However, such firms generally have limited capital, unlimited liability, and ends when the owner dies or dissolves the business.
Partnerships have greater capital potential, but also suffer from unlimited liability and often alack of expertise in at least one or more functional areas of business.
Corporations dominate in the United States due to their ability to raise greater amounts of capital, ease of transition to new owners, and limited liability. They do suffer agency costs and double taxation.
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The median of a set of numbers is the ____________________ value when the numbers are ranked in ascending or descending order.
Fill in the blank(s) with the appropriate word(s).
The U.S. accounting standards are more principle-based than IFRS
a. True b. False Indicate whether the statement is true or false
Which of the following accounts would be found in the purchases journal?
a. Sales; b. Cash; c. Returns and Allowances; d. Freight-In; e. none of these
Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2014 are as follows: January 40,000 February 50,000 March 60,000 Finished goods inventory at the end of 2013 was 10,000 units. On average, 25 percent of the futons to be sold in the next month are produced and kept as ending balance in finished goods inventory. The planned selling price is $150
per unit. How many futons are budgeted to be produced in February by Fantastic Futons? A) 37,500 B) 65,000 C) 52,500 D) 55,000