ACG 2021 PATTERSON FSU EXAM 1
QUESTIONS AND ANSWERS 100%
VERIFIED.
, Sole proprietorship - ANSWERA business owned by one person. Simple to set up and
gives you control.
Partnership - ANSWERA business owned by two or more persons who are associated.
Partners bring unique skills and sometimes the individuals don't have enough resources
on their own.
Corporation - ANSWERA business organized as a separate legal entity owned by
stockholders. Anyone can become an owner via stocks. Stocks are easy to sell. Easy to
raise funds to due to sale of stock.
Taxes and Legal liability - ANSWERThe three different forms of business organization
have different tax rates and legal liabilities based on who owns the business.
Accounting; Information system that identifies, records, and communicates the
economic events of an organization to interested users. - ANSWER
Users; People who utilise accounting systems. There are two types. Internal and
External users. - ANSWER
Internal Users - ANSWERManagers who plan, organize and run a business. Finance,
marketing, HR, and management.
External Users - ANSWERInvestors who use accounting information to make decisions
to buy, hold, or sell stock. Creditors use this info to evaluate risk. Customers, Unions,
regulatory agencies, etc.
Taxing authorities - ANSWERExternal users like the IRS who use accounting info to see
if companies comply with laws.
Ethics in Financial Reporting - ANSWERSarbanes Oxley Act (SOX) Management is
held responsible for accuracy of financial information.
Financing Activities - ANSWERWays a business organization raises money or capital.
Two ways. Through creditors and common stock.
Creditors - ANSWERPeople you owe money to. Like note or bond payable. Taking a
loan from a bank.
Common Stock - ANSWERTotal amount paid in by stockholders for the shares they
purchase. Selling stock to raise money.
Dividends - ANSWERCash payments to stockholders.
QUESTIONS AND ANSWERS 100%
VERIFIED.
, Sole proprietorship - ANSWERA business owned by one person. Simple to set up and
gives you control.
Partnership - ANSWERA business owned by two or more persons who are associated.
Partners bring unique skills and sometimes the individuals don't have enough resources
on their own.
Corporation - ANSWERA business organized as a separate legal entity owned by
stockholders. Anyone can become an owner via stocks. Stocks are easy to sell. Easy to
raise funds to due to sale of stock.
Taxes and Legal liability - ANSWERThe three different forms of business organization
have different tax rates and legal liabilities based on who owns the business.
Accounting; Information system that identifies, records, and communicates the
economic events of an organization to interested users. - ANSWER
Users; People who utilise accounting systems. There are two types. Internal and
External users. - ANSWER
Internal Users - ANSWERManagers who plan, organize and run a business. Finance,
marketing, HR, and management.
External Users - ANSWERInvestors who use accounting information to make decisions
to buy, hold, or sell stock. Creditors use this info to evaluate risk. Customers, Unions,
regulatory agencies, etc.
Taxing authorities - ANSWERExternal users like the IRS who use accounting info to see
if companies comply with laws.
Ethics in Financial Reporting - ANSWERSarbanes Oxley Act (SOX) Management is
held responsible for accuracy of financial information.
Financing Activities - ANSWERWays a business organization raises money or capital.
Two ways. Through creditors and common stock.
Creditors - ANSWERPeople you owe money to. Like note or bond payable. Taking a
loan from a bank.
Common Stock - ANSWERTotal amount paid in by stockholders for the shares they
purchase. Selling stock to raise money.
Dividends - ANSWERCash payments to stockholders.
