accounting 2361 txst felan exam WITH 100% CORRECT SOLUTIONS 2024

Sole Proprietorship correct answers Business organization owned by one person. The owner is personally liable for all debts of the business. Partnership correct answers Business organization owned by two or more people. Each partner is personally liable for all debts of the business. Corporation correct answers A separate legal entity. Owners of corporations (stockholders) are not personally liable for debts of the corporation. Financial Accounting correct answers External users (creditors, investors, etc.) Managerial Accounting correct answers Internal users (managers, supervisors etc.) Separate Entity Assumption correct answers The financial reports of a business are assumed to include the results of only that business's activities. Assets correct answers Economic resources presently controlled by the company that have measurable value and are expected to benefit the company by producing cash inflows or reducing cash outflows in the future Liabilities correct answers Measurable amounts that the company owes to creditors Stockholder Equity correct answers Owners' claim to the business resources Revenues correct answers Sales of goods or services to customers. They are measured at the amount the business charges the customer. Expenses correct answers The costs of doing business necessary to earn revenues, including wages to employees, advertising, insurance, utilities, and supplies used in the office. Dividends correct answers Distributions of a company's earnings to its stockholders as a return on their investment. External Exchanges correct answers Exchanges involving assets, liabilities, and stockholders' equity that you can see between the company and someone else.