Retained earnings are the amounts left over from profitable operations since the firm’s beginning. They are equal to total profits minus all dividends paid to stockholders.

Consumer finance companies make loans to individuals; commercial finance companies make loans to businesses.

The major disadvantage of debt financing is the inability to deduct interest expenses for income tax purposes.

Short-term loans:

Credit unions are state-chartered banks that operate much like savings and loan associations.

An accountant who has a bachelor’s degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.

The first step in the accounting cycle is to:

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

Which of the following is an example of an intangible asset for a manufacturer of padlocks?