ACCT Exam 1 Questions & Answers 2023/2024

ACCT Exam 1 Questions & Answers 2023/2024 Three forms of business organization - ANSWER-sole proprietorship, partnership, corporation Sole Proprietorship - ANSWER-simple to establish, owner controlled, tax advantages Partnership - ANSWER-simple to establish, shared control, broader skills and resources, tax advantages Corporation - ANSWER-easier to transfer ownership, easier to raise funds, no personal liability Hybrid forms of business combine the __ advantages of a partnership with the ___ - ANSWER-tax, limited liability Examples of Hybrid forms of business combining the tax advantages of partnership with limited liability - ANSWER-LLC's, S corporations The purpose of financial information is to provide - ANSWER-inputs for decision making Accounting is the ___ that identifies, reports, and communicates the economic events of an organization to interested users. - ANSWER-information system Two types of users of accounting information - ANSWER-internal users and external users Example of Internal Users - ANSWER-CEO/ Management, Production Supervisor, Company Officers Internal User: How use financial information - ANSWER-Answer questions relevant to their jobs