©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
TAMU ACCT 229 - Exam 1 Questions and
Answers 100% Solved
3 types of businesses - ✔✔sole proprietorship, partnership, corporation
unlimited liability - ✔✔sole proprietorship & partnership
limited liability - ✔✔corporation
Sole Proprietorship - ✔✔one owner
advantage: easy to form
separate entity for accounting purposes
not a separate entity for legal purposes or tax purposes
Partnership - ✔✔two or more owners
separate entity for accounting purposes
not a separate entity for legal or tax purposes
Corporations - ✔✔business incorporated under the laws of a particular
state.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Advantages: limited liability, continuity of life, ease in transfer of stock
(ownership), opportunity to raise large amounts of money by selling shares
of stock to a large number of people.
3 types of business activities - ✔✔financing, investing, operating
Operating Activities - ✔✔everyday activities
-sell inventory, pay employees
Investing Activities - ✔✔how you grow your company
-buying building, equipment, vehicles, fixtures
Financing Activities - ✔✔how you pay for your growth
-borrow money: temporary financing
-issue stock: permanent
4 financial statements - ✔✔Income statement
Statement of Retained Earnings
Balance Sheet
Statement of Cash Flows
What does a balance sheet show? - ✔✔Shows the financial position of a
company at a point in time. A = L + SHE
Assests - ✔✔what a company owns, or what is owed to a company
TAMU ACCT 229 - Exam 1 Questions and
Answers 100% Solved
3 types of businesses - ✔✔sole proprietorship, partnership, corporation
unlimited liability - ✔✔sole proprietorship & partnership
limited liability - ✔✔corporation
Sole Proprietorship - ✔✔one owner
advantage: easy to form
separate entity for accounting purposes
not a separate entity for legal purposes or tax purposes
Partnership - ✔✔two or more owners
separate entity for accounting purposes
not a separate entity for legal or tax purposes
Corporations - ✔✔business incorporated under the laws of a particular
state.
, ©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Advantages: limited liability, continuity of life, ease in transfer of stock
(ownership), opportunity to raise large amounts of money by selling shares
of stock to a large number of people.
3 types of business activities - ✔✔financing, investing, operating
Operating Activities - ✔✔everyday activities
-sell inventory, pay employees
Investing Activities - ✔✔how you grow your company
-buying building, equipment, vehicles, fixtures
Financing Activities - ✔✔how you pay for your growth
-borrow money: temporary financing
-issue stock: permanent
4 financial statements - ✔✔Income statement
Statement of Retained Earnings
Balance Sheet
Statement of Cash Flows
What does a balance sheet show? - ✔✔Shows the financial position of a
company at a point in time. A = L + SHE
Assests - ✔✔what a company owns, or what is owed to a company
