ACCT 2000 EXAM 3 LOWE-ARDOIN 2024 NEWEST UPDATE
WITH COMPLETE QUESTIONS AND ANSWERS/ALREADY
GRADED A+
Which is not one of the three forms of business organization?
A. Corporation
B. Partnership
C. Sole proprietorship
D. Creditorship - ANSWER-D
Which is an advantage of corporations relative to partnerships and sole proprietorships?
A. Harder to transfer ownership
B. Reduced legal liability for investors
C. Most common form of organization
D. Increased difficulty of raising funds - ANSWER-B
Easy transfer of ownership is a characteristic of which form of business organization?
A. Sole proprietorship
B. Partnership
C. Corporation
D. All of the ANSWER choices are correct - ANSWER-C
In which forms of business organization are the owners personally liable for all the debts of the
business?
Entry field with correct ANSWER
Sole proprietorships and corporations
Sole proprietorships and partnerships
Partnership and corporation
,All of the ANSWER choices are correct - ANSWER-B
The sole proprietorship form of business organization
Entry field with correct ANSWER
combines the records of the business with the personal records of the owner.
must have at least two owners in most states.
generally receives favorable tax treatment relative to a corporation.
is classified as a separate legal entity. - ANSWER-C
Which forms of business organization are considered to be separate accounting entities?
Entry field with correct ANSWER
Sole proprietorships, corporations, and partnerships
Only corporations
Partnerships and corporations only
Sole proprietorships and partnerships only - ANSWER-A
Internal users of accounting information include a company's stockholders. T or F - ANSWER-False
(External users)
To which of the following questions will internal users want ANSWERs?
Entry field with correct ANSWER
What selling price for our product will maximize the company's net income?
Which product line is most profitable?
Is cash sufficient to pay dividends to stockholders?
,All of the ANSWER choices are correct. - ANSWER-D
Which of the following is not an external user of accounting data?
Entry field with correct ANSWER
Economic planners
Chief Financial Officer
Labor unions
Customers - ANSWER-B
Which statement about users of accounting information is incorrect?
Entry field with correct ANSWER
Regulatory authorities are considered internal users.
Taxing authorities are considered external users.
Management is considered an internal user.
Present creditors are considered external users. - ANSWER-A
Which of the following did not result from the Sarbanes-Oxley Act?
Entry field with correct ANSWER
Penalties for fraudulent activity increased.
Tax rates on corporations increased.
Top management must now certify the accuracy of financial information.
Auditors cannot provide non-audit services to the same client. - ANSWER-B
Which of the following is the most appropriate definition of accounting information?
, Entry field with correct ANSWER
The interconnected network of subsystems necessary to operate a business.
The information system that identifies, records, and communicates the economic events of an
organization to interested users.
Electronic collection and organization of vast amounts of financial information.
A means of collecting information. - ANSWER-B
Which of the following is required as a result of SOX?
Entry field with correct ANSWER
Companies that go bankrupt must repay shareholders for loss investments.
Public companies must present audited financial statements.
All shareholders now have an oversight role of the company's financial activities.
Top management must certify the financial statements for their company. - ANSWER-D
Interest expense is classified under operating activities on the statement of cash flows. T or F -
ANSWER-True
aying interest expense and receiving interest revenue are examples of
Entry field with correct ANSWER
investing activities.
delivery activities.
operating activities.
financing activities. - ANSWER-C
WITH COMPLETE QUESTIONS AND ANSWERS/ALREADY
GRADED A+
Which is not one of the three forms of business organization?
A. Corporation
B. Partnership
C. Sole proprietorship
D. Creditorship - ANSWER-D
Which is an advantage of corporations relative to partnerships and sole proprietorships?
A. Harder to transfer ownership
B. Reduced legal liability for investors
C. Most common form of organization
D. Increased difficulty of raising funds - ANSWER-B
Easy transfer of ownership is a characteristic of which form of business organization?
A. Sole proprietorship
B. Partnership
C. Corporation
D. All of the ANSWER choices are correct - ANSWER-C
In which forms of business organization are the owners personally liable for all the debts of the
business?
Entry field with correct ANSWER
Sole proprietorships and corporations
Sole proprietorships and partnerships
Partnership and corporation
,All of the ANSWER choices are correct - ANSWER-B
The sole proprietorship form of business organization
Entry field with correct ANSWER
combines the records of the business with the personal records of the owner.
must have at least two owners in most states.
generally receives favorable tax treatment relative to a corporation.
is classified as a separate legal entity. - ANSWER-C
Which forms of business organization are considered to be separate accounting entities?
Entry field with correct ANSWER
Sole proprietorships, corporations, and partnerships
Only corporations
Partnerships and corporations only
Sole proprietorships and partnerships only - ANSWER-A
Internal users of accounting information include a company's stockholders. T or F - ANSWER-False
(External users)
To which of the following questions will internal users want ANSWERs?
Entry field with correct ANSWER
What selling price for our product will maximize the company's net income?
Which product line is most profitable?
Is cash sufficient to pay dividends to stockholders?
,All of the ANSWER choices are correct. - ANSWER-D
Which of the following is not an external user of accounting data?
Entry field with correct ANSWER
Economic planners
Chief Financial Officer
Labor unions
Customers - ANSWER-B
Which statement about users of accounting information is incorrect?
Entry field with correct ANSWER
Regulatory authorities are considered internal users.
Taxing authorities are considered external users.
Management is considered an internal user.
Present creditors are considered external users. - ANSWER-A
Which of the following did not result from the Sarbanes-Oxley Act?
Entry field with correct ANSWER
Penalties for fraudulent activity increased.
Tax rates on corporations increased.
Top management must now certify the accuracy of financial information.
Auditors cannot provide non-audit services to the same client. - ANSWER-B
Which of the following is the most appropriate definition of accounting information?
, Entry field with correct ANSWER
The interconnected network of subsystems necessary to operate a business.
The information system that identifies, records, and communicates the economic events of an
organization to interested users.
Electronic collection and organization of vast amounts of financial information.
A means of collecting information. - ANSWER-B
Which of the following is required as a result of SOX?
Entry field with correct ANSWER
Companies that go bankrupt must repay shareholders for loss investments.
Public companies must present audited financial statements.
All shareholders now have an oversight role of the company's financial activities.
Top management must certify the financial statements for their company. - ANSWER-D
Interest expense is classified under operating activities on the statement of cash flows. T or F -
ANSWER-True
aying interest expense and receiving interest revenue are examples of
Entry field with correct ANSWER
investing activities.
delivery activities.
operating activities.
financing activities. - ANSWER-C
