Characteristics of a corporation

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Across
  1. 1. The stockholder of a corporation cannot commit the corporation to a contract unless that stockholder is acting in a different role, such as an officer in the business
  2. 3. The assumption that requires the items on the financial statements to be measured in terms of a monetary unit.
  3. 4. Stockholders may transfer stock as they wish—by selling or trading the stock to another person, giving the stock away
  4. 5. As noted earlier, creation of a corporation begins when its organizers, called the incorporators, obtain a charter from the state. The charter includes the authorization for the corporation to issue a certain number of shares of stock, which represent the ownership in the corporation.
  5. 7. The result of operations that occurs when total expenses are greater than total revenues.
  6. 10. Reports the change in the equity of the business, including contributed capital and retained earnings, for a specific period of time.
  7. 12. Reports the net income or net loss of the business for a specific period of time.
  8. 14. Equity earned by profitable operations of a corporation that is not distributed to stockholders.
  9. 15. The result of operations that occurs when total revenues are greater than total expenses.
  10. 16. Corporations have an
  11. 17. A principle that states that acquired assets and services should be
  12. 18. The right to receive cash in the future from customers for goods sold or for services performed.
  13. 24. Identify the accounts and account type (Asset, Liability, or Equity).
  14. 26. An examination of a company’s financial statements and records.
  15. 28. An event that affects the financial position of the business and can be measured with faithful representation.
  16. 30. Determine whether the accounting equation is in balance.
  17. 31. Requires management to review internal control and take responsibility for the accuracy and completeness of their financial reports.
  18. 32. The state grants a BLANK(also called articles of incorporation), which is the document that gives the state’s permission to form a corporation.(Specifies how much stock is in a company 1,000, 100,00, 1 billion etc) (easier to raise capital)
  19. 34. Decide whether each account increases or decreases.
  20. 36. Amounts earned from delivering goods or services to customers.
  21. 37. Ultimate Control
  22. 39. The owners’ claims to the assets of the business.
  23. 40. at their actual cost and not fair value.
  24. 42. Assumes that the entity will remain in operation for the foreseeable future.
  25. 43. A business organized under state law that is a
  26. 44. Corporations are subjected to more governmental regulation than other forms of business, which is a disadvantage for corporations and can be expensive.
  27. 45. Stockholders own the business, but a board of directors—elected by the stockholders—appoints corporate officers to manage the business.
Down
  1. 2. called BLANK because the state BLANK or approves the establishment of the corporate entity.
  2. 6. The franchise tax is paid to keep the corporation charter in force and enables the corporation to continue in business.
  3. 8. An organization that stands apart as a separate economic unit.
  4. 9. A stockholder has limited liability for the corporation’s debts. The most that stockholders can lose is the amount they originally paid for the stock.
  5. 11. Monitors the work of independent accountants who audit public companies.
  6. 13. Reports how the company’s retained earnings balance changed for a specific period of time.
  7. 19. Owner contributions to a corporation.
  8. 20. The costs of selling goods or services.
  9. 21. Corporate earnings are subject to double taxation. First, corporations pay their own income tax on corporate income. Then, the stockholders pay personal income tax on the dividends that they receive from corporations. This is different from sole proprietorships and partnerships, which pay no business income tax. Instead, the tax falls solely on the individual owners.
  10. 22. A distribution of a corporation’s earnings to stockholders.
  11. 23. Business documents that are used to communicate information needed to make business decisions
  12. 25. Reports on a business’ cash receipts and cash payments for a specific period.
  13. 27. Debts that are owed to creditors.
  14. 29. Measures how profitably a company uses its assets. Net income / Average total assets.
  15. 33. The basic tool of accounting, measuring the resources of the business (what the business owns or has control of) and the claims to those resources (what the business owes to creditors and to the owners). Assets=Liabilities+Equity.
  16. 35. Represents the basic ownership of a corporation.
  17. 38. Reports on the assets, liabilities, and stockholders’ equity of the business as of a specific date.
  18. 41. Economic resources that are expected to benefit the business in the future and something the business owns or has control of.