ACG 2025 EXAM 1 FSU PATERSON
EXAM QUESTIONS AND ANSWERS
100% VERIFIED.
, A corporation is a business owned by - ANSWERstockholders
What are the advantages of a corporation? - ANSWER1. Easy to transfer ownership
2. Easy to raise money
3. No personal Liability
4. Continuous Life
What are the disadvantages of a corporation? - ANSWER1. Tough to start
2. Double Taxation
3. Very little control
4. More government regulation
The advantages to a corporation are the disadvantages to - ANSWERSole
proprietorships and Partnerships
External users (Financial accounting) - ANSWERInvestors, Creditors, and Government
Internal Users (Managerial accounting) - ANSWERManagers and Employees
SEC (Securities and Exchange Commission) - ANSWERmonitors the market and
ENFORCES the rules regulating the sale of stocks and bonds (Watch dog or Police)
FASB (Financial Accounting Standards Board) - ANSWERMAKES accounting rules/
standards in the U.S.
GAAP (Generally Accepted Accounting Principles) - ANSWERRULES companies need
to follow
SOX (Sarbanes-Oxley Act) - ANSWERRequires companies to certify material and has
made punishments more severe.
A corporations annual report includes: - ANSWER1. Financial Statement
2. Management Discussion and Analysis
3. Notes to the financial statement
4. Independent Auditors Report
Good grade - ANSWERUnqualified
Bad grade - ANSWERQualified
A Financial Statement includes: - ANSWER1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
EXAM QUESTIONS AND ANSWERS
100% VERIFIED.
, A corporation is a business owned by - ANSWERstockholders
What are the advantages of a corporation? - ANSWER1. Easy to transfer ownership
2. Easy to raise money
3. No personal Liability
4. Continuous Life
What are the disadvantages of a corporation? - ANSWER1. Tough to start
2. Double Taxation
3. Very little control
4. More government regulation
The advantages to a corporation are the disadvantages to - ANSWERSole
proprietorships and Partnerships
External users (Financial accounting) - ANSWERInvestors, Creditors, and Government
Internal Users (Managerial accounting) - ANSWERManagers and Employees
SEC (Securities and Exchange Commission) - ANSWERmonitors the market and
ENFORCES the rules regulating the sale of stocks and bonds (Watch dog or Police)
FASB (Financial Accounting Standards Board) - ANSWERMAKES accounting rules/
standards in the U.S.
GAAP (Generally Accepted Accounting Principles) - ANSWERRULES companies need
to follow
SOX (Sarbanes-Oxley Act) - ANSWERRequires companies to certify material and has
made punishments more severe.
A corporations annual report includes: - ANSWER1. Financial Statement
2. Management Discussion and Analysis
3. Notes to the financial statement
4. Independent Auditors Report
Good grade - ANSWERUnqualified
Bad grade - ANSWERQualified
A Financial Statement includes: - ANSWER1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
