Accounting Exam 1 ACCT 2000 Newest Update 2025
|Actual Complete Questions and Detailed Answers|
Graded A+
What are the 3 forms of business organization? - - Sole proprietorship
- Partnership
- Corporation
A sole proprietorship has __ owner - 1
A partnership has __________ owners - 2 or more
A corporation has _____ owners due to the issuance of stock - Many
What are the three advantages of a sole proprietorship? - 1. Simple to establish
2. Control
3. Tax advantages (only have to pay taxes once)
What is a disadvantage of a sole proprietorship? - Personal liability
What are the three advantages of a partnership? - 1. Simple to establish
2. Broader skills and resources
3. Tax advantages
, What is a disadvantage of a partnership? - Personal liability
What are three advantages of a corporation? - 1. Easy to transfer ownership
2. Easy to raise capital (sell stock)
3. No personal liability (most you can lose is stock investment)
What is a disadvantage of a corporation? - Taxes (paid twice; once by the
company and once when dividends are paid)
What issues standard (rules) called IFRS for countries overseas? (world-wide
accounting, not just in US) - International Accounting Standards Board (IASB)
__________ is the set of rules used for accounting - Generally Accepted
Accounting Principles (GAAP)
The 2 fundamental qualities for useful accounting information is ... - - Relevant
- Faithful representation
Relevant information must have what 2 values? - - Predictive value
- Confirming value
Faithful representation must have be _________ , __________ , and _________ -
- Complete
- Neutral
- Free from error
|Actual Complete Questions and Detailed Answers|
Graded A+
What are the 3 forms of business organization? - - Sole proprietorship
- Partnership
- Corporation
A sole proprietorship has __ owner - 1
A partnership has __________ owners - 2 or more
A corporation has _____ owners due to the issuance of stock - Many
What are the three advantages of a sole proprietorship? - 1. Simple to establish
2. Control
3. Tax advantages (only have to pay taxes once)
What is a disadvantage of a sole proprietorship? - Personal liability
What are the three advantages of a partnership? - 1. Simple to establish
2. Broader skills and resources
3. Tax advantages
, What is a disadvantage of a partnership? - Personal liability
What are three advantages of a corporation? - 1. Easy to transfer ownership
2. Easy to raise capital (sell stock)
3. No personal liability (most you can lose is stock investment)
What is a disadvantage of a corporation? - Taxes (paid twice; once by the
company and once when dividends are paid)
What issues standard (rules) called IFRS for countries overseas? (world-wide
accounting, not just in US) - International Accounting Standards Board (IASB)
__________ is the set of rules used for accounting - Generally Accepted
Accounting Principles (GAAP)
The 2 fundamental qualities for useful accounting information is ... - - Relevant
- Faithful representation
Relevant information must have what 2 values? - - Predictive value
- Confirming value
Faithful representation must have be _________ , __________ , and _________ -
- Complete
- Neutral
- Free from error
