Answer:
D. All of these are differences between the two type of business
Explanation:
The sole proprietorship is a business organzation owned, controlled and organized by one person.
Features of sole proprietorship
1. It is owned and controlled by one person
2. The owners is personally liable for all business debt.
3. Owners can establish a sole proprietorship instantly, easily, and inexpensively.
4. Sole proprietorships rarely survive the death of their owners.
5. Capital is limited since the business owner is the only provider of capital.
Features of Corporation
1. It protect its owners from personal liability for corporate debts and obligations.
2.A corporation has perpetual life, that is, when shareholders pass on or leave a corporation, they can transfer their shares to others who can continue a corporation's business
3. Corporation is owned by its shareholders and managed by its board of directors.
4. Corporations can raise capital more easily through the sale of securities.
Answer:
e. Liabilities Net Income
Overstated No Error
Explanation:
Unearned Revenue is a liability account that is used to record revenue that the business has received but not yet earned because the goods and services have not yet been provided. By crediting Accrued revenue to this account, it increases it when it is not supposed to so Liabilities are overstated.
Accrued Revenue go to the Accounts Receivable section of the balance sheet to indicate that the business is owed for goods or services provided and so have nothing to do with Net Income so there is no error there.
Answer:
$6,500
Explanation:
Capit gain on sales = sales of interest by Yong -basis of Yong in the LLC interest
Sales of interest by Yong $17,500
Less Basis of Yong in the LLC interest $11,000
Gain $6,500
Therefore Yong will tend to recognize a gain of $6,500 because he makes a sale of $17,500 in which his basis in the LLC interest was $11,000 making him to have a capital gain of $6,500
Answer:
to explain any difference between the depositor’s balance per books with the balance per bank
Explanation:
The goal of this process is to ascertain the differences between the banks records and the depositor’s records and make accounting changes as deemed appropriate. There is a general flow that is used to make the correcting entries:
1. The process flow starts with the bank’s ending cash balance
2. Add any deposits made by the company to the bank that are in transit
3. Deduct any cheques that are uncleared by he bank
4. Add or deduct any other items available as necessary
5. In the company bank records, once again start with the ending balance
6. Deduct any bank service fees, penalties and NSF (Non-Sufficient Funds) cheques.
7. Add interests earned
At the end of this process, it is likely that both accounts would be equal and tally.
