What Is Meant by the Following, and Why Are These

question 42

Essay

What is meant by the following, and why are these important: cover your equity; angels; venture capital; valuation; due diligence; IPO; mezzanine; private placement; and ESOP?

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Definitions:

Adjusting Entries

Journal entries made in accounting to adjust income and expense accounts so that they comply with the accrual concept.

Journal Entries

Records of financial transactions in the order they occur, which are then posted to the appropriate accounts.

Debits

Entries in accounting that increase an asset or expense account, or decrease equity, liability, or revenue accounts.

Credits

Accounting entries that represent an increase in liabilities or revenues, or a decrease in assets or expenses.