What are the three forms of Business Organizations? Answer the following Accounts: (A)Asset
(L)Liability (SE)Stockholders\' Equity 1. Cash 2. Common Stock 3. Accounts Payable 4. Rent
Expense 5. Sales or Revenue 6. Accounts Receivable What is the first financial statement to be
prepared? What are the three Activities of a Business? Financial Accounting provides
information for decision makers primarily inside or outside the entity? What are the Rules of
Accounting called? Write the Accounting Equation? Can it be written another way?
Solution
The three forms of business organizations are Sole proprietorship, Partnership, and a
Corporation.
1. Cash – (A)
2. Common stock – (SE)
3. Accounts payable – (L)
4. Rent expense – (SE)
5. Sales or Revenue – (SE)
6. Accounts receivable – (A)
The first financial statement to be prepared is the Income Statement.
The three activities of a business are Operating activities, Investing activities, and Financing
activities.
Financial Accounting provides information for decision makers primarily outside the entity such
as shareholders, creditors, etc.
The Rules of Accounting are called the Generally Accepted Accounting Principles or GAAP for
short.
The Accounting Equation is typically written as:
Assets = Liabilities + Stockholders’ Equity
It can also be written in two more ways as under:
Liabilities = Assets – Stockholders’ Equity; or
Stockholders’ Equity = Assets - Liabilities.
What are the three forms of Business Organizations Answer the follow.pdf
1. What are the three forms of Business Organizations? Answer the following Accounts: (A)Asset
(L)Liability (SE)Stockholders' Equity 1. Cash 2. Common Stock 3. Accounts Payable 4. Rent
Expense 5. Sales or Revenue 6. Accounts Receivable What is the first financial statement to be
prepared? What are the three Activities of a Business? Financial Accounting provides
information for decision makers primarily inside or outside the entity? What are the Rules of
Accounting called? Write the Accounting Equation? Can it be written another way?
Solution
The three forms of business organizations are Sole proprietorship, Partnership, and a
Corporation.
1. Cash – (A)
2. Common stock – (SE)
3. Accounts payable – (L)
4. Rent expense – (SE)
5. Sales or Revenue – (SE)
6. Accounts receivable – (A)
The first financial statement to be prepared is the Income Statement.
The three activities of a business are Operating activities, Investing activities, and Financing
activities.
Financial Accounting provides information for decision makers primarily outside the entity such
as shareholders, creditors, etc.
The Rules of Accounting are called the Generally Accepted Accounting Principles or GAAP for
short.
The Accounting Equation is typically written as:
Assets = Liabilities + Stockholders’ Equity
It can also be written in two more ways as under:
Liabilities = Assets – Stockholders’ Equity; or
Stockholders’ Equity = Assets - Liabilities
