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Types of
Businesses
Balance
Sheet
IS
SRE
SCF
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Types of Businesses - $100
A business with one owner who assumes
unlimited liability.
What is a Sole Proprietorship?
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Types of Businesses - $200
A business owned by two or more
persons. Each person often is personally
liable for debts of the business.
What is a Partnership?
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Types of Businesses - $300
A business that operates as separate from its
owners. Typically owners do not assume
unlimited liability.
What is a Corporation?
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Types of Businesses - $400
A business that has its stock bought and
sold on exchanges.
What is a Public Company?
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Types of Businesses - $500
A business in which ownership is
transferred by the private sale of stock.
What is a Private Company?
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Balance Sheet - $100
The basic accounting equation.
What is Assets = Liabilities + Stockholders’
Equity?
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Balance Sheet - $200
The wording used in the third line of a
Balance Sheet’s heading to denote a point
in time.
What is “At Month XX, 20XX”?
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Balance Sheet - $300
The account that represents the
company’s total earnings and losses less
all dividends occurring since the formation
of the corporation.
What is Retained Earnings?
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Balance Sheet - $400
The order in which assets are listed on the
Balance Sheet.
What is Liquidity?
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Balance Sheet - $500
Assumption that states that results of
business activities should be reported in
an appropriate monetary unit.
What is the Unit of Measure Assumption?
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IS - $100
The main equation for the Income
Statement.
What is Revenues – Expenses = Net Income?
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IS - $200
The wording used in the third line of an
Income Statement’s heading to denote a
period of time.
What is “For the Period Ended Month XX, 20XX”?
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IS - $300
DAILY DOUBLE!!!
IS - $400
Formal label used to describe the costs of
running a business.
What is “Expenses”?
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IS - $500
Formal label used to indicate the profit of
the period.
What is “Net Income”?
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SRE - $100
The basic equation for the Statement of
Retained Earnings.
What is Beginning Retained Earnings +Net
Income – Dividends Declared = Ending
Retained Earnings?
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SRE - $200
The wording used in the third line of the
heading for the SRE to denote the period of
time covered by the statement.
What is “For the Period Ended Month XX, 20XX”?
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SRE - $300
The number used for Beginning Retained
Earnings.
What is the balance in the Retained
Earnings account at the beginning of the
period?
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SRE - $400
The number used for the Net Income
amount in the SRE equation.
What is Net Income (Loss) as calculated on
the Income Statement?
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SRE - $500
What it means to declare a dividend.
What is “formally promising to pay some
of a company’s resources to its owners”?
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SCF - $100
“OIF!” The three categories used to
classify business activities on the SCF.
What are Operating, Investing, and
Financing?
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SCF - $200
Cash inflows are shown as ____ numbers
and cash outflows are shown as ____
numbers.
What are positive and negative?
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SCF - $300
The subtotals of the three sections of the
SCF sum to form this number.
What is the Net Change in Cash?
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SCF - $400
The equation to determine the End-of-Year
Cash balance.
What is Beginning-of-Year Cash + Net
Change in Cash = End-of-Year Cash?
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SCF - $500
The manner in which negative amounts
are report in the financial statements.
What is “in parentheses”?
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Daily Double

Specify Your Wager!
IS --The information conveyed by the lines in an
Income Statement’s heading.
What is Who (name of business), What
(title of the statement), When
(accounting period), and Other (unit of
measure).
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