Acct Exam 1 Questions & Answers 2023/2024

Acct Exam 1 Questions & Answers 2023/2024 sole proprietorship - ANSWER-business owned by one person + simple to establish, full control, tax advantage partnership - ANSWER-business owned by 2 or more people; often formed if one doesn't have enough economic resources or partner brings unique skills/resources corporation - ANSWER-business entity owned by stockholders + easy to transfer ownership, easier to raise funds, no personal liability for owners - double taxation internal users - ANSWER-managers who plan, organize and run business (marketing managers, production supervisors, finance directors, company officers) external users - ANSWER-outside the company (investors/owners, creditors/suppliers/bankers, taxing authorities, regulatory agencies, customers and labor unions) Sarbanes-Oxley Act (SOX) - ANSWER-top management must now certify the accuracy of financial info; penalties more severe business activities (3) - ANSWER--financing (debt/LIABILITIES and equity/COMMON STOCK/DIVIDENDS), -investing (purchase of ASSETS/resources), -operating (REVENUES, EXPENSES, inventory?, supplies?) income statement - ANSWER-financial statement: reports company's revenues and expenses and resulting net income/loss; info on predicting future net income; over specific period of time