Explain to a Small Business Owner Some Advantages and Disadvantages

question 23

Essay

Explain to a small business owner some advantages and disadvantages of a simplified employee pension plan (SEP).

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Definitions:

Journalize Transactions

The process of recording financial transactions in the journal as part of the accounting cycle.

Analyze Transactions

The process of examining financial transactions to understand their nature, how they affect the accounts, and how they should be recorded in the accounting system.

Correcting Entries

Journal entries made to amend previously recorded transactions or entries that were made incorrectly.

Balance Sheet Account

A financial statement line item that represents the assets, liabilities, and shareholders' equity at a specific point in time.