Introduction: An organization can be of various type like profit earning and non-profit earning for economic benefits and non-economic benefits. A profit earning business organization usually commences with owner’s capital, investing in shares, stock, issuing bonds for payments, making transactions for business deals, inflows and outflows of cash with the aim of earning profit. On the other hand, a non-profit earning organization has no aim of earning profit with service motive.
To fill: The given blanks in the question.
Given info: The various statements are provided to fill with the given items in the question.
Answer to Problem 1.1KTQ
1. Asset
2. Partnership
3. Revenue
4. Corporation
5. Non-Business Entity
6. Expense
7. Liability
8. Share of Stock
9. Bond
10. Stockholder
11. Creditor
12. Economic Entity Concept
13. Sole proprietorship
14. Capital Stock
15. Business
16. Business Entity
Explanation of Solution
1. A future economic benefit: Asset.
2. A business owned by two or more individuals, the organization form often use by accounting firms and law firms: Partnership.
3. An inflow of assets resulting from the sale of goods and services: Revenue.
4. A form of entity organized under the laws of a particular state; ownership evidenced by shares of stock: Corporation.
5. An organization operated for some purpose other than to earn a profit: Non-Business Entity.
6. An outflow of asset resulting from the sale of goods and services: Expense.
7. An obligation of a business: Liability.
8. A certificate that acts as evidence of ownership in a corporation: Share of stock.
9. A certificate that represents a corporation’s promise to repay a certain amount of money and interest in the future: Bond.
10. One of the owners of a corporation: Stockholder.
11. Someone to whom a company or person has a debt: Creditor.
12. The assumption that a single, identifiable unit must be accounted for in all situations: Economic entity concept.
13.A form of organization with a single owner: Sole proprietorship.
14.Indicates the owner’s contributions to a corporation: Capital stock
15.All of the activities necessary to provide the members of an economic system with goods and services: Business.
16. An organization operated to earn a profit: Business entity.
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Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
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Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College