ACC 101 Questions with answers
well graded A+
Sole Proprietorship - ANS✅✅owned by a single individual
Partnership - ANS✅✅a business owned by two or more people
Corporation - ANS✅✅ownership represented by shares of stock
Advantages of a corporation - ANS✅✅1) limited liability
2) continuity of life
3) ease of transfer of ownership
4) opportunity to raise large amounts of money
disadvantage of corporation - ANS✅✅double taxation
Objectives of Financial Accounting - ANS✅✅1. it is useful to investors and creditors in making
decisions
2. helps predict cash flows
3. tells us about economic resources, claims to resources, and changes in resources and claims
external decision makers - ANS✅✅investors and creditors
internal decision makers - ANS✅✅managers
Assets - ANS✅✅resources of the company
Liabilities - ANS✅✅creditors' claims to resources
Stockholders' Equity - ANS✅✅owners' claims to resources
well graded A+
Sole Proprietorship - ANS✅✅owned by a single individual
Partnership - ANS✅✅a business owned by two or more people
Corporation - ANS✅✅ownership represented by shares of stock
Advantages of a corporation - ANS✅✅1) limited liability
2) continuity of life
3) ease of transfer of ownership
4) opportunity to raise large amounts of money
disadvantage of corporation - ANS✅✅double taxation
Objectives of Financial Accounting - ANS✅✅1. it is useful to investors and creditors in making
decisions
2. helps predict cash flows
3. tells us about economic resources, claims to resources, and changes in resources and claims
external decision makers - ANS✅✅investors and creditors
internal decision makers - ANS✅✅managers
Assets - ANS✅✅resources of the company
Liabilities - ANS✅✅creditors' claims to resources
Stockholders' Equity - ANS✅✅owners' claims to resources
