Accounting 1 Questions and Graded Answers.
sole proprietorship - simple to establish, owner controlled, tax advantages, Simple to set
up and maintains control with founder
partnership - simple to estable, shared control, croader skills and resources, tax
advantages, Shared control, tax advantages, increased skills and resources.
corporation - easier to transfer owndership, easier to raise funds, no personal liability,
Easier to transfer ownership and raise funds, no personal liability.
internal revenue service - Trying to determine whether the company complied with tax
laws.
chief financial officer - Trying to determine whether the company should employ debt or
equity financing.
creditors - Trying to determine whether the company can pay its obligations.
marketing managers - Trying to determine whether a marketing proposal will be cost
effective.
investors in common stock - Trying to determine whether the company's net income will
result in a stock price increase.
income tax expense - income statement
inventories - balance sheet
sole proprietorship - simple to establish, owner controlled, tax advantages, Simple to set
up and maintains control with founder
partnership - simple to estable, shared control, croader skills and resources, tax
advantages, Shared control, tax advantages, increased skills and resources.
corporation - easier to transfer owndership, easier to raise funds, no personal liability,
Easier to transfer ownership and raise funds, no personal liability.
internal revenue service - Trying to determine whether the company complied with tax
laws.
chief financial officer - Trying to determine whether the company should employ debt or
equity financing.
creditors - Trying to determine whether the company can pay its obligations.
marketing managers - Trying to determine whether a marketing proposal will be cost
effective.
investors in common stock - Trying to determine whether the company's net income will
result in a stock price increase.
income tax expense - income statement
inventories - balance sheet
