Consider the following terms and definitions:
TERMS:
1. Proprietorship
2. Faithful representation
3. Partnership
4. Stock
5. Limited liability
6. Limited Liability Company
7. Cost principle
8. FASB
9. Net income of $15,000
10. Business owners
DEFINITIONS:
A. Feature that sets the maximum amount of financial loss by a stockholder to the cost of the investment
B. Reason why accountants should not write up the value of equipment due to an increase in its fair value
C. Is composed of accountants
D. An entity that has fewer than two owners
E. Principle that does not accept incomplete or bias data
F. Revenues of $40,000 and expenses of $25,000
G. Possess mutual agency
H. The corporate charter specifies how much of this a corporation can sell
I. Entity where the business, and not the proprietor, is liable for the company’s debts
J. Use accounting information to set goals, to measure progress toward those goals, and to make adjustments when needed
Requirement
1. Match the terms with their correct definitions.