NAF Exam Questions & Answers 2023/2024
NAF Exam Questions & Answers 2023/2024 Sole Proprietorship Advantages - ANSWER-Easiest to start Least regulated Single owner keeps all the profits Taxed once as personal income Partnership Advantages - ANSWER-More capital, workload shared, loses shared, easy to form Corporation Advantages - ANSWER-limited liability, ease of transfer of ownership, perpetual life, external sources of funds, expansion potential LLC (Limited Liability Company) - ANSWER-Limited liability, pass through income taxation, flexibility GAAP (Generally Accepted Accounting Principles) - ANSWER-a set of accounting standards that is used in the preparation of financial statements AICPA - ANSWER-American Institute of Certified Public Accountants; the national professional organization of CPAs. Financial reports - ANSWER-must be objective, consistent and unbiased principle of regularity or consistency - ANSWER-the same accounting principles must be followed at all times principle of permanence of methods - ANSWER-Principle requiring that the same accounting methods and format of statements should be used over time so they can be compared.
Document information
- Uploaded on
- September 1, 2023
- Number of pages
- 4
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
