Answer:
partnership; least
Explanation:
In partnership, two or more people join together to form a firm called partnership firms for the motive of earning profits. The partners have unlimited liability which means they are responsible for meeting debt from their personal assets in case partnership defaults.
This feature of partnership offers assurance to the creditors that their investment is safe.
So, if partnership fails, the least an investor can expect to lose on his investment.
Answer:
See calculations below
Explanation:
With regards to the above we'll simply add back the given depreciation to the net profit for 2018
= Net income $1,090,000 + depreciation
$290,000
= $1,358,000
Cash flow for 201 is $1,358,000
Almost two-thirds of people in labor force do not have a college degree
Answer:
The correct answer is a.Owner capital is where the period's net income or loss is transferred.
Explanation:
The income and expense accounts are canceled and closed at the end of each accounting period, transferring their balances to a summary bridge account entitled "profit and loss", where the balances are summarized. The amounts of the profit and loss account, which reflect the net profit or loss for the period, are transferred to the owner's capital account. These operations are necessary because:
- Revenues really increase stockholders' equity, while expenses decrease it.
- Through the accounting period these increases and decreases are accumulated in income and expense accounts, not within the owner's capital account.
- Closing entries at the end of each accounting period transfer the net effect of these increases and decreases, from the income and expense accounts to the owner's capital account.
In addition, closing entries allow income and expense accounts to start each of the new accounting periods with zero balances. This is also necessary because:
- The income statement reflects the income and expenses incurred during an accounting period and is prepared based on the information recorded in the income and expense accounts.
- These accounts must begin each new accounting period with a zero balance, if it is desired that the end-of-period balances accurately reflect the income and expenses of said period.
