ACG 2021 FSU Exam 1 (2025) Actual Exam Questions and Answers A+ Graded

ACG 2021 FSU Exam 1 (2025) Actual Exam
Questions and Answers A+ Graded



Forms .of .Business .Organization .- .CORRECT .ANSWER-Sole .Proprietorship,
.Partnership .and .Corporation


Sole .Proprietorship .- .CORRECT .ANSWER-Simple .to .establish, .Owner .controlled
.and .Tax .advantages


Partnership .- .CORRECT .ANSWER-Simple .to .establish, .Shared .control, .Broader
.skills .and .resources .and .Tax .advantages


Corporation .- .CORRECT .ANSWER-Easier .to .transfer .ownership, .Easier .to
.increase .funds, .No .personal .liability


What .is .a .corporation? .- .CORRECT .ANSWER-An .incorporated .business .entity
.that .has .filed .articles .of .incorporation .in .a .state .of .domicile


What .are .the .advantages .of .a .corporation? .- .CORRECT .ANSWER-They .can
.attract .large .amounts .of .capital .investment
Allows .for .an .easy .transfer .of .ownership
Can .attract .professional .management
Provides .stockholders .with .limited .liability
Survives .the .death .of .its .owner(s)

What .are .the .disadvantages .of .a .corporation? .- .CORRECT .ANSWER-
Corporations .are .subjected .to .more .government .regulation
Shareholders .can .have .difficulty .knowing .whether .management .is .making
.decisions .in .shareholder's .best .interest
Corporations .are .subjected .to .income .taxation .(double .taxation)

Accounting .- .CORRECT .ANSWER-The .info .system .that .identifies, .record .and
.communicates .the .economic .events .of .an .organization .to .interested .users


What .is .the .two .groups .for .accounting? .- .CORRECT .ANSWER-Internal .Users
.and .External .Users


Internal .Users .- .CORRECT .ANSWER-Work .inside .of .a .business .that's .being
.examined
Ex) .Marketing, .Management, .Finance .and .Human .Resources

, External .Users .- .CORRECT .ANSWER-People .who .are .not .employees .of .the
.business
Ex) .Investors .(Shareholders) .and .Creditors .(Bankers)

What .is .the .purpose .of .accounting? .- .CORRECT .ANSWER-To .provide .economic
.information .as .inputs .for .decision .making .by .used .of .the .info


Sarbanes-Oxly .Act .of .2002 .resulted .in .- .CORRECT .ANSWER-Top .management
.must .now .certify .the .accuracy .of .financial .info
Penalties .for .fraudulent .activity .was .increased
Independence .of .auditors .was .increased
Increased .oversight .by .the .board .of .directors .must .occur, .including .the .board's
.selection .and .supervision .of .the .independent .auditor


All .Businesses .are .involved .in .- .CORRECT .ANSWER-Financing, .Investing .and
.Operating


Financing .Activities .- .CORRECT .ANSWER-Borrowing .money .(debt .financing)
.and .Issuing .(selling) .shares .of .stock .for .cash


Notes .payable .are .due ._______ .and .bonds .payable .are .due .______ .- .CORRECT
.ANSWER-Sooner; .Later


Investing .Activities .- .CORRECT .ANSWER-Purchase .of .resources .a .company
.needs .to .operate


Items .that .are .commonly .affected .in .Operating .Activities .- .CORRECT .ANSWER-
Revenues, .Inventory, .Receivables, .Expenses, .Liabilities, .Net .income .and .Net
.loss


Revenues .- .CORRECT .ANSWER-Amounts .earned .from .the .sales .of .products

Inventory .- .CORRECT .ANSWER-Goods .available .for .sale .to .customers

Receivables .- .CORRECT .ANSWER-Right .to .receive .money .from .another .party

Expenses .- .CORRECT .ANSWER-Cost .of .assets .consumed .or .services .used

Liabilities .- .CORRECT .ANSWER-Arising .from .expenses .and .represent .amount
.owed .to .another .party


Net .income .- .CORRECT .ANSWER-The .excess .of .revenues .over .expenses

Net .loss .- .CORRECT .ANSWER-The .excess .of .expenses .over .revenues

What .are .the .financial .statements? .- .CORRECT .ANSWER-Income .Statement,
.Statement .of .Shareholders' .Equity, .Balance .Sheet .and .Statement .of .Cash
.Flows