ACCT 2000 LOWE ARDOIN 2 STUDY GUIDE
LATEST PRACTICE PROBLEMS AND
COMPLETE ACCURATE ANSWERS
GUARANTEED PASS
⩥ Which type of business is formed between two or more people giving
them broader skills and resources, super easy to establish, only gets
taxed once, but the owners are personal liable for everything?
Answer: Partnership
⩥ Which type of business sells stock?
Answer: Corporation
⩥ Which type of business can easily share its ownership and raise
capital with no personal liability but gets taxed twice?
Answer: Corporation
⩥ Accounting is the information system that ___________,
___________, and ____________ the economic events of an
organization to interested users.
Answer: identifies; records; communicates
,⩥ A corporation is a ___________ __________ __________ from its
investors.
Answer: separate legal entity
⩥ Which is an advantage of corporations relative to partnerships and
sole proprietorships?
Answer: reduced legal liability for investors
⩥ Which forms of business organizations are considered to be separate
accounting entities?
Answer: Sole Proprietorship, Partnership, and Corporation
⩥ Every business, regardless of the form, needs separate
_______________ entities.
Answer: accounting
⩥ What are the types of users of accounting information?
Answer: internal and external
⩥ What are some examples of internal accounting information users?
Answer: managers, supervisors, and company officials
⩥ What are some examples of external accounting information users?
, Answer: investors, creditors, and regulators
⩥ How do internal accounting information users use financial
information?
Answer: to plan, organize, and run a business
⩥ How do external accounting information users use financial
information?
Answer: to make decisions about buying or selling stock or loaning
company money
⩥ Effective financial reporting depends on sound __________
______________.
Answer: ethic behavior
⩥ What are the three types of business activities?
Answer: financing, investing, and operating
⩥ What is financing?
Answer: raising money or capitals
⩥ What is investing?
Answer: purchasing resources needed to operate
LATEST PRACTICE PROBLEMS AND
COMPLETE ACCURATE ANSWERS
GUARANTEED PASS
⩥ Which type of business is formed between two or more people giving
them broader skills and resources, super easy to establish, only gets
taxed once, but the owners are personal liable for everything?
Answer: Partnership
⩥ Which type of business sells stock?
Answer: Corporation
⩥ Which type of business can easily share its ownership and raise
capital with no personal liability but gets taxed twice?
Answer: Corporation
⩥ Accounting is the information system that ___________,
___________, and ____________ the economic events of an
organization to interested users.
Answer: identifies; records; communicates
,⩥ A corporation is a ___________ __________ __________ from its
investors.
Answer: separate legal entity
⩥ Which is an advantage of corporations relative to partnerships and
sole proprietorships?
Answer: reduced legal liability for investors
⩥ Which forms of business organizations are considered to be separate
accounting entities?
Answer: Sole Proprietorship, Partnership, and Corporation
⩥ Every business, regardless of the form, needs separate
_______________ entities.
Answer: accounting
⩥ What are the types of users of accounting information?
Answer: internal and external
⩥ What are some examples of internal accounting information users?
Answer: managers, supervisors, and company officials
⩥ What are some examples of external accounting information users?
, Answer: investors, creditors, and regulators
⩥ How do internal accounting information users use financial
information?
Answer: to plan, organize, and run a business
⩥ How do external accounting information users use financial
information?
Answer: to make decisions about buying or selling stock or loaning
company money
⩥ Effective financial reporting depends on sound __________
______________.
Answer: ethic behavior
⩥ What are the three types of business activities?
Answer: financing, investing, and operating
⩥ What is financing?
Answer: raising money or capitals
⩥ What is investing?
Answer: purchasing resources needed to operate
