Chapter 2, Problem 2CC

Two of your friends, Sony and Ted, are planning on starting a new  business. Knowing you are studying accounting they come to you for advice as to the best business form they should use for their business. They want to be able to raise capital; they also want protection against claims by creditors.  As an accounting student:     What business form would you recommend to Sony and Ted for their business?    Why?

Hudson Signs, Inc., needs funds, and Alley Hudson, the president, has asked you to considerinvesting in the business. Answer the following questions about the different ways that Hudsonmight organize the business. Explain each answer.a. What forms of organization will enable the owners of Hudson Signs, Inc., to limit theirrisk of loss to the amounts they have invested in the business?b. What form of business organization will give Alley Hudson the most freedom to manage the business as she wishes?c. What form of organization will give creditors the maximum protection in the event thatHudson Signs, Inc., fails and cannot pay its debts?

Muna, Mulemba and Mutinta are lawyers and want to start a business in their field of study. Explain the process, the fees and the document that they need to found their organisation and further describe the contents of the document

there are 5 seperate scenarios by the way. Thank you! #1. Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussing the audit fee, Allnet’s management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne’s firm. Required1. Identify the parties potentially affected by this audit and the fee plan proposed.2. What are the ethical factors in this situation? Explain.3. Would you recommend that Thorne accept this audit fee arrangement? Why or why not?4. Describe some ethical considerations guiding your recommendation. ______________________________________________________________________________________ #2 Amy Martin is a student who plans to attend approximately four professional events a year at her college. Each event necessitates payment of $100…

Using the accounting equation for transaction analysis and preparing financial statements Abby Perry recently opened her own law office on December 1, which she operates as a corporation. The name of the new entity is Abby Perry, Attorney. Perry experienced the following events during the organizing phase of the new business and its first month of operation, December 2018. Some of the events were personal and did not affect the law practice. Others were business transactions and should be accounted for by the business. Requirements Analyze the effects of the preceding events on the accounting equation of Abby Perry, Attorney. Use a format similar to Exhibit 1-6. Prepare the following financial statements: a. Income statement. b. Statement of retained earnings. c. Balance sheet. d. Statement of cash flows.

In this scenario, you are presented with the company’s financial records. This activity requires vigilance and a keen eye for details which is crucial as the information presented will challenge your ability to use good reasoning and critical thinking to analyze the financial data presented. You are required to only use the figures in line with your surname initial which is D.   Please Answer Question 2 A Steve Osbourne is considering opening a business, but the major decision faced is how to organize the business. Steve anticipates generating a massive profit during the first year and that the following years should be relatively profitable. Although he has enough to start the business now as a partnership, he believes cash flow may be an issue as the company grows. Steve believes that the corporate form of operation will be his best option and have hired you as a consultant and seek your advice. Requirements:  Answer the following questions for Steve.   a. Explain the corporate…

I. Why is accounting called the language of business?   II. Mr. K an entrepreneur started his restaurant business last year and thinks that his business is doing well. He plans to expand his operations this year by opening other branches in Metro Manila. However, he does not maintain proper financial records of his company. He does not believe in the benefits of accounting and proper record keeping. Provide a short narrative explaining to Mr. K the importance of accounting in his business.   III. Provide 3 examples of the financial information needed by the following stakeholders: a. Management b. Investors/Stakeholders c. Lenders d. Suppliers e. Customers f. Employees g. Government

The owner of a company asks you if he can charge all his personal expenses to his business. He said that he owns the company anyway. Explain to the business owner the business entity assumption and the ethical considerations of his idea.

Use the internet to research one manufacturing, one retail (or merchandising), and one service business. For each business, describe the following:Your answer:A. the primary purpose of the entityB. the types of activities that accountants would record (hint: what is the source of the business’ funding, and what costs might the business have?)C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making process