LSU ACCT 2000 EXAM 2 CERTIFICATION
EVALUATION SET 2026 COMPLETE QUESTIONS
AND ANSWERS
◉ two or more
Advantages: simple to establish, broader skills and resources, tax
advantages
Disadvantage: Personal liability. Answer: partnership
◉ separate legal entity
Advantage: Easy to transfer ownership, easy to raise capital ($), no
personal liability
Disadvantage: Taxes, double taxation. Answer: corporation
◉ Accounting is the information system that _________, __________, and
____________ the economic events of an organization to interested
users.. Answer: identifies, records, communicate
◉ managers, supervisors, company officials
used to plan, organize and run a business. Answer: internal (within)
,◉ investors (potential shareholders), creditors (owe money),
regulators, IRS
decisions to buy or sell stock or loan company money. Answer:
external (outside)
◉ raising money
borrow money from creditor (creates debt)
Issue (sell) shares of stock to investors. Answer: financing
◉ purchase of resources needed to operate;
resources owned and used by a business (computers, equipment,
delivery trucks). Answer: investing
◉ day to day operations
shoe store selling shoes, dentist cleaning teeth, lawn care company
mowing lawns
(revenues, expenses). Answer: operating
◉ basic accounting equation. Answer: Assets = Liabilities +
Stockholders' Equity
◉ resources owned by a business. Answer: assets
, ◉ cash, accounts receivable, inventory, supplies, property, plant and
equipment. Answer: assets
◉ amounts owed to creditors/suppliers. Answer: liability
◉ accounts payable, notes payable, bond payable. Answer: liability
◉ owner's claims to assets. Answer: stockholders equity
◉ common stock and retained earnings. Answer: stockholders
equity
◉ amounts received from issuing (selling) shares of stock. Answer:
common stock
◉ net income retained in the business. Answer: retained earnings
◉ cash payments to stockholders. Answer: dividends
◉ amounts earned from sale of products or services performed.
Answer: revenue
◉ cost of assets consumed or services used. Answer: expenses
EVALUATION SET 2026 COMPLETE QUESTIONS
AND ANSWERS
◉ two or more
Advantages: simple to establish, broader skills and resources, tax
advantages
Disadvantage: Personal liability. Answer: partnership
◉ separate legal entity
Advantage: Easy to transfer ownership, easy to raise capital ($), no
personal liability
Disadvantage: Taxes, double taxation. Answer: corporation
◉ Accounting is the information system that _________, __________, and
____________ the economic events of an organization to interested
users.. Answer: identifies, records, communicate
◉ managers, supervisors, company officials
used to plan, organize and run a business. Answer: internal (within)
,◉ investors (potential shareholders), creditors (owe money),
regulators, IRS
decisions to buy or sell stock or loan company money. Answer:
external (outside)
◉ raising money
borrow money from creditor (creates debt)
Issue (sell) shares of stock to investors. Answer: financing
◉ purchase of resources needed to operate;
resources owned and used by a business (computers, equipment,
delivery trucks). Answer: investing
◉ day to day operations
shoe store selling shoes, dentist cleaning teeth, lawn care company
mowing lawns
(revenues, expenses). Answer: operating
◉ basic accounting equation. Answer: Assets = Liabilities +
Stockholders' Equity
◉ resources owned by a business. Answer: assets
, ◉ cash, accounts receivable, inventory, supplies, property, plant and
equipment. Answer: assets
◉ amounts owed to creditors/suppliers. Answer: liability
◉ accounts payable, notes payable, bond payable. Answer: liability
◉ owner's claims to assets. Answer: stockholders equity
◉ common stock and retained earnings. Answer: stockholders
equity
◉ amounts received from issuing (selling) shares of stock. Answer:
common stock
◉ net income retained in the business. Answer: retained earnings
◉ cash payments to stockholders. Answer: dividends
◉ amounts earned from sale of products or services performed.
Answer: revenue
◉ cost of assets consumed or services used. Answer: expenses
