calculated as $5‚813 $5‚524. Included in the total liabilities of $5‚813 were the long-term deferred tax liabilities of $1‚160. A significant amount of time was spent discussing the large deferred tax liability reported by your company. Several members of the civic group questioned you about the nature of this liability. In particular‚ some argue that deferred tax liabilities should not be recognized and‚ therefore‚ should be excluded from liabilities when computing the debt-to-equity ratio. You
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is an unincorporated business with one owner who pays personal income tax on profits from the business. The benefit of the sole proprietorship is the tax advantage. The disadvantage of a sole proprietorship is obtaining capital funding. * Liability – As the owner of a sole proprietorship‚ one is personally liable for all business debts‚ creditors may sue you personally to satisfy the debt. * Income taxes – As a sole proprietor you must report all business income or losses on your personal
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Larry M. Walther & Christopher J. Skousen Accounting Cycle Exercises I Download free ebooks at bookboon.com 2 Accounting Cycle Exercises I © 2010 Larry M. Walther‚ Christopher J. Skousen & Ventus Publishing ApS. All material in this publication is copyrighted‚ and the exclusive property of Larry M. Walther or his licensors (all rights reserved). ISBN 978-87-7681-554-7 Download free ebooks at bookboon.com 3 Accounting Cycle Exercises I Contents Contents Problem 1 Worksheet 1 Solution
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Accounts receivable. b. Accounts payable. c. Sales. d. Cash. 9. Of the following account types‚ which would be increased by a debit? a. Liabilities and expenses. b. Assets and equity. c. Assets and expenses. d. Equity and revenues. 10. Cash reduction of capital result in: a. Increase in owner’s equity and assets b. Increase in owner’s equity and liabilities c. Decrease in owner’s equity and assets d. Decrease in owner’s equity and
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financial position) reports the financial position of the business at a point in time. It does so by listing the categories and amounts of assets‚ liabilities and equity on a specific date‚ in a format that proves the fundamental accounting equation. ASSETS = EQUITY + LIABILITIES or ASSETS – LIABILITIES = EQUITY Formats of presentation Regardless of the format for the presentation of the balance sheet‚ comparative information should always
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References: Answers. (2012‚ Dec 24). Retrieved from Gale Encylopedia of Small Business: Liabilities: http://www.answers.com/topic/liabilities-2#ixzz2FvSlFuj9 Brozovsky‚John Contractual Agreement - offer and acceptance. (2012‚ Dec 25). Retrieved from e-lawresources.co.uk: http://e-lawresources.co.uk/Offer-and-acceptance-contract.php Four Essential Elements of a Contract
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following is a reason to form a limited liability company rather than an S corporation? There is no limit on the number of owners of a limited liability company whereas the number of shareholders of an S corporation is limited. All owners of a limited liability company have limited liability‚ but not all owners of an S corporation have limited liability. A limited liability company can be formed without formalities
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opening a sole proprietorship‚ corporation‚ Limited Liability Corporations‚ partnerships‚ etc. Limited Liability Corporations and partnerships are very similar company types‚ but also are different. Limited Liability Corporations have their own benefits just as corporations‚ and each play important roles in business. Limited Liability Corporation – a business that “is a business structure allowed by state statute” (IRS‚ 2011). A Limited Liability Corporation is considered a mixture of a corporation
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Underpinnings of Business Law OMM 670: Legal Environment February 25‚ 2013 Legal Underpinnings of Business Law Business | Type of Business | Liability Exposure | Compare | Contrast | Tinker’s Home Security Service | Sole proprietorship | Unlimited | Monetary rewards are from both the Proprietor & business | Sole Liability | Tinker & Tailor’s Home Security Service | General partnership | Unlimited | All partners are responsible whether silent or active | If you are named
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I N A T I O N of RISK-ADJUSTED DISCOUNT RATES and LIABILITY BETA RUSSELL E. BINGHAM T H E H A R T F O R D FINANCIAL SERVICES G R O U P Table of Contents Page 2 3 5 7 8 11 12 13 14 14 15 16 17 17 18 Subject Abstract 1. Summary 2. Total Return Model 3. After-Tax Discounting 4. Derivation of Risk-Adjusted Discount Rate and Liability Beta Figure l : Baseline Risk / Return Line vs Leverage 5. Liability Beta Figure 2: Equity vs Liability Beta Figure 3: Equity Beta vs Risk-Adjusted Discount
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