FINANCIAL ACCOUNTING FOR MBAS EXAM SCRIPT SOLVED QUESTIONS ACCURATE ANSWER COLLECTION

FINANCIAL ACCOUNTING FOR MBAS
EXAM SCRIPT SOLVED QUESTIONS
ACCURATE ANSWER COLLECTION

●● Financial Accounting
Answer: Accounting information provided to external users (e.g.
investors and creditors)


●● 2 Functions of Financial Accounting
Answer: 1. Measure business activities of a company
2. Communicate those measurements to external parties for decision-
making purposes


●● What roles does accounting play in society
Answer: Measuring economic activity and communicating useful
information to help investors and creditors make good decisions


●● What are the three types of business structures
Answer: 1. Corporation
2. Sole Proprietorship
3. Partnership

, ●● Corporation
Answer: a company that is legally separate from its owner


●● What is the advantage of being a corporation
Answer: Stockholders have limited liability


●● Sole Proprietorship
Answer: A business owned by one person


●● Partnership
Answer: a business owned by two or more people


●● What is the disadvantage of a sole proprietorship or partnership
Answer: neither offer limited liability


●● 3 types of Business Activities
Answer: 1. Financing Activities
2. Investing Activities
3. Operating Activities


●● Financing Activities
Answer: Transactions the company has with investors and Creditors