What Is a Corporation? Identify the Key Advantages and Disadvantages

question 115

Essay

What is a corporation? Identify the key advantages and disadvantages of corporations.

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Definitions:

Credit

A bookkeeping record that enhances a liability or equity balance, or diminishes an asset or expenditure balance.

Debits

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, recorded on the left side of the ledger.

Credits

Credits are accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts.

Trial Balance

A list of all general ledger accounts and their balances at a particular time, ensuring that debits equal credits in the double-entry accounting system.