Answer:
An entity is an abstract category or grouping of things that share a common quality, and an instance, is a particular form or type of the entity.
In a barbershop, the main entities would be:
- Barbers
- Hair Cutting instruments
- Furniture
And some instances for each entity would be:
- Barber - Barber A, Barber B, Barber C, each representing a different person.
- Hair Cutting instruments - razors, blades, clips.
- Furniture - chairs, counter, mirrors, brooms, bulbs.
Answer:
The correct answer is A) Regular corporation or C corporation
Explanation:
Because Candance and Martha want to sell shares, they have to form a corporation, be it a C Corporation or an S Corporation, however, they also want to avoid double taxation, therefore, they have to form a C Corporation.
A C Corporation or Regular Corporation is taxed on the income it makes, and nothing else, the profit after deducting taxes is not taxed again. A S Corporation, on the other hand, is taxed both on income and profit.
Answer:
O d. term loans, mortgage loans, and bonds
Explanation:
Term loans are credit facilities where the lender and borrower agree on the loan amount and a repayment schedule. It involves a large sum of money to be repaid over a long period making it ideal for acquiring capital.
Mortgage loans are long term debts used to finance the purchase of properties. It is ideal for expensive capital due to the lengthy time it takes to repay.
Bonds are long-term debt securities issued by corporations to finance long term projects.
Answer:b. net income is overstated
Explanation:
The cost of inventory which is a constituent of cost of goods sold will have an impact on the income, an higher cost of inventory means low net income and lower cost of inventory means an higher net income. Therefore if the inventory is understated it leads to profit overstatement.
Net income will not be understated because a cost item has been understated but it will only be overstated, cost of merchandise sold is understated but this is the action and not the effect, merchandise on the balance sheet will be understated and not overstated.
