Understanding Sole Proprietorship vs Corporation: Advantages,

School: No School - Course: AA 1 - Subject: Accounting

BAF3M - Culminating Assignment/173 Instructions Use your class notes and your textbook to answer the following questions or statements. If you use point form for your answers - provide enough detail to answer the question. Chapter 1 & 2 List 2 advantages of a sole-proprietorship over a corporation(2 marks) List 2 advantages of a corporation over a sole proprietorship(2marks) Explain the difference between Accounts Receivable and Accounts Payable?(2 marks) Accounts Receivable - people who owe money to business Accounts + Explain what Owner's Equity represents(1 mark) What is the fundamental accounting equation?(1 mark) Explain briefly what a balance sheet shows.(2 marks)

Explain briefly what an income statement shows.(2 marks) Chapter 3 & 4 List two factors that would increase Owner's Equity.(2 marks) Explain two different things that causes the owner's equity to decrease(2 marks) What balances on a trial balance?(1 mark) What does it mean when an account has an exceptional balance?(1 mark) State whether each account traditionally has a debit (DR) or credit (CR) balance(8 marks) BankEquipmentFurniture Accounts PayableCapitalSupplies Bank LoanMortgage Payable