ACC 231 Study Guide - Midterm Guide: International Financial Reporting Standards, Deferred Income, Promissory Note

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15 Sep 2018
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Goal is for expenses to equal the revenues (usually gifts from donors). All of the money earned or donated to a. Nfp is used to purse the organizations objects. (ex: red cross is to protect life and health). Business: a legal entity that exchanges a product (either a good or service) for money or something that can be turned into money. Revenues: generated by providing a good or service. In order to record revenue, you have to have provided a good or service. Expenses: resources used in the production of revenues (or cost incurred to generate revenue) Sole proprietorship: one owner and business and owner are the same. Pros- only taxed once, simple to set up. Cons- owner is personally liable for business debts, can"t transfer ownership. Corporation: separate legal entity from the owners (corp. or inc. ). Pros- assets of owners are separate from the corporation, easy to transfer ownership.

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