Exam 2

2. Accounts ________ which represents the bills due in the short term
6. The Internal Revenue Service assumes that a corporation is filing as this unless the business explicitly elects otherwise
7. A positive balance of trade
8. Profits that are owed to the owners of the company but are reinvested into the company
9. Accounting principles used in the USA
13. Accounting principles used outside the USA
14. Difference between the money brought in and all of the costs incurred to the company.
16. final goods and services produced in the United States and purchased by foreigners living outside the USA
17. Ratio that measures the ability of a firm to pay short-term bills
18. Type of payment/amount of money that does not change no matter how many hours are worked (salary)
20. Association of two or more persons243 to carry on as co-owners of a business for profit
21. Type of equity or money that the firm owes to owners and can also be considered stockholders’ equity

1. Ratio that measures the extent to which a firm relies on debt to finance its operations.
2. Ratio that measures the ability of firms to transform resources into net income.
3. Assets = liability + owners equity
4. Most common and simplest form of business with one owner & make up for 70% of businesses in the USA
5. The difference between the revenue and the cost of goods sold
10. An amount of money paid for every unit of the good or service produced
11. Type of venture/ partnership between two or more companies in different countries
12. Include all final goods and services produced by those outside the United States and purchased by a member of the U.S. population
15. Type of attractiveness that is envisioned benefitsthat a potential employee sees in working for a specific organization (employer or empoloyee)
19. Owners of a business