Identify the basic formula of a balance sheet and give an example of an item that might fall under each major component of the formula.A. Assets = liabilities + owners equityB. Assets - two categories
What will be an ideal response?
1. Current - include cash and anything else that is expected to be converted into cash or consumed in the operation of the business during a period of one year or less. Examples: cash, inventory, accounts receivable
2. Fixed - Fixed assets are those that are tangible and will be used over a long period of time. Example: equipment
C. Liabilities - two categories
1. Current - due within one year, example accounts payable
2. Long-term - anything due over one year, example notes payable/bank loan
D. Owner's Equity
1. This amount represents the excess of all assets over all liabilities. It represents the net worth of the business. Examples: retained earnings, profit, monies invested in business by entrepreneur
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Systems development is separated from data processing activities because failure to do so
a. weakens database access security b. allows programmers access to make unauthorized changes to applications during execution c. results in inadequate documentation d. results in master files being inadvertently erased
Short-range feedback is usually sufficient to measure the effectiveness of skill development
Indicate whether the statement is true or false.
Why are sole proprietorships so much more popular in terms of the number of firms than corporations? (This answer should identify the significant advantages to the sole proprietorship versus those of other forms of business organization.)
What will be an ideal response?
Identify and discuss the primary sources of contemporary U.S. law