Answer & Explanation
Distributions of cash from a corporation to its stockholders: The Dividends accounts will represent the amount of cash give it to stockholders
Consumed assets or services:
prepaid expired
When a company pay his rent in advance for example, it will use a prepaid rent account
Over the course of time it will decrease this account and declare the rent expense
Ownership is limited to one person:
Sole propietor is the business form at which a single person is the owner of a firm. However, the sole propietor can have employees.
Officers and others who manage the business:
board of director
Creditor claims against the assets of the business:
Secure Liability will be for example a mortage on which the creditor as a collateral on a firm asset (real-state)
A separate legal entity under state laws:
A subsidiary will be different legan entity under the law but in real life it will be part of the company. Generally the parent company present consolidated statements which include the subsidiary to amend this.
A report prepared by management that presents financial information:
Annual report or managerial statement or managerial report
A section of the annual report that presents management’s views:
Management discussion and analysis (MD&A)
Future economic benefits:
The Assets of the company are the way it has to generate future economic benefit. His inventory, equipment, cash and investment can generate benefit in the future.
Involves acquiring the resources necessary to run the business:
<u>purchase of assest</u> to mantain the business going.
