CH12 - Accounting for Partnerships and Limited Liability Companies Flashcards Preview

ACCT201 > CH12 - Accounting for Partnerships and Limited Liability Companies > Flashcards

Flashcards in CH12 - Accounting for Partnerships and Limited Liability Companies Deck (10):
1

The debit balance in the owner's equity account of a partner.

deficiency

2

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.

limited liability company (LLC)

3

The winding-up process when a partnership goes out of business.

liquidation

4

An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.

partnership

5

The formal written contract creating a partnership.

partnership agreement

6

The sale of assets when a partnership is being liquidated.

realization

7

A measure of the efficiency of the business in generating revenues, which is computed as revenue divided by number of employees.

revenue per employee

8

A summary of the changes in each member's equity in a limited liability corporation that have occurred during a specific period of time.

statement of members' equity

9

A summary of the changes in each partner's capital in a partnership that have occurred during a specific period of time.

statement of partnership equity

10

A summary of the liquidation process whereby cash is distributed to the partners based on the balances in their capital accounts.

statement of partnership liquidation