EXAM PREP
ACC 200 EXAM 1
(Chapter 1, 2 & 3)
Complete Chapters Solutions Manual
are Included
** Final Exam Questions With 100%
Correct Answers | Grade A+
** Guaranteed Pass
** Updated | New Version
, Sole Proprietorship Owned by one person. Simple to set up. Owner maintains control. Owners are
liable for business debts because it is not a separate legal entity.
Partnerhsip Two more more people decide to go into business together. Often formed when
one person doesn't have the economic resources to start business alone or a
person with unique skills is needed. More favorable tax treatment. Owners are
personally liable for business debts because not a separate legal entiity.
Corporation Separate legal entity. Owned by stockholders. Investors give the business cash
or other property in exchange for shares of stock. Easier to raise funds because
shares are easier to sell and investors can invest with small amounts of money.
Less favorable tax treatment. Owners are not personally liable for debts.
Accounting The information system that identifies, records, and communicates the economic
events of an organization to interested users.
Internal and External Two types of users
Internal Users Managers who plan, organize, and run the business. Must answer important
questions. Use both internal and financial statements.
External Users Investors (owners), Creditors (debtors like banks and suppliers), Various others
(taxing authorities, customers, labor unions, and regulatory agencies)
Financial Statements Primary means of communicating with users?
Income statement, Retained Earnings Statement, Four Financial Statements?
Balance Sheet, Statement of Cash Flows
Income Statement Reports revenues and expenses for time period. Indicates how successfully the
business performed during the period.
Retained Earnings Statement indicates how much of previous income was distributed to you and the other
owners of your business in the form of dividends, and how much was retained in
the business to allow for future growth.
The Balance Sheet Reports what a company owns and what it owes at a point in time.
Asset Anything a company owns
Liability Anything a company owes
Net Income Revenues - Expenses where Revenue > Expenses
Net Loss Revenues - Expenses where Revenue < Expenses
ACC 200 EXAM 1
(Chapter 1, 2 & 3)
Complete Chapters Solutions Manual
are Included
** Final Exam Questions With 100%
Correct Answers | Grade A+
** Guaranteed Pass
** Updated | New Version
, Sole Proprietorship Owned by one person. Simple to set up. Owner maintains control. Owners are
liable for business debts because it is not a separate legal entity.
Partnerhsip Two more more people decide to go into business together. Often formed when
one person doesn't have the economic resources to start business alone or a
person with unique skills is needed. More favorable tax treatment. Owners are
personally liable for business debts because not a separate legal entiity.
Corporation Separate legal entity. Owned by stockholders. Investors give the business cash
or other property in exchange for shares of stock. Easier to raise funds because
shares are easier to sell and investors can invest with small amounts of money.
Less favorable tax treatment. Owners are not personally liable for debts.
Accounting The information system that identifies, records, and communicates the economic
events of an organization to interested users.
Internal and External Two types of users
Internal Users Managers who plan, organize, and run the business. Must answer important
questions. Use both internal and financial statements.
External Users Investors (owners), Creditors (debtors like banks and suppliers), Various others
(taxing authorities, customers, labor unions, and regulatory agencies)
Financial Statements Primary means of communicating with users?
Income statement, Retained Earnings Statement, Four Financial Statements?
Balance Sheet, Statement of Cash Flows
Income Statement Reports revenues and expenses for time period. Indicates how successfully the
business performed during the period.
Retained Earnings Statement indicates how much of previous income was distributed to you and the other
owners of your business in the form of dividends, and how much was retained in
the business to allow for future growth.
The Balance Sheet Reports what a company owns and what it owes at a point in time.
Asset Anything a company owns
Liability Anything a company owes
Net Income Revenues - Expenses where Revenue > Expenses
Net Loss Revenues - Expenses where Revenue < Expenses
