CPA Exam vocabulary questions and
answers.
Advantages over other business structures - Answer~ simplest to form (no formal feeling) and
operate'
~ Businesses can be sold without approval from others
~ Owner has right to make all the decisions
~no need to share profit
~ Profits are taxed only once
Ascertain - Answer find out learn or determine with certainty usually by making an inquiry or other
efforts
Caveat - Answer warning against certain acts
Corroborate - Answer establish your strengths and as with new evidence or that
Defalcation - Answer the fraudulent appropriation of funds are property entrusted to your care but
actually owned by someone else
Disadvantages over other business structures - Answer~. If a loss on our suffers all of the Lost
~ cannot obtain capital from others (partner / shareholder)
~ Unlimited personal liability
Flight of partnership interest - Answer1. We first to write to share in P/L and return of contribute a
shin on dissolution
2. Partnership right is considered personal property
3. Interest meaning rights to use p/s property for p/s purposes
4. is assignable w/o other partners consent
Partnership agreement is controlling - Answer means that standard partnership price apply unless
otherwise stated in the p/s agreement
answers.
Advantages over other business structures - Answer~ simplest to form (no formal feeling) and
operate'
~ Businesses can be sold without approval from others
~ Owner has right to make all the decisions
~no need to share profit
~ Profits are taxed only once
Ascertain - Answer find out learn or determine with certainty usually by making an inquiry or other
efforts
Caveat - Answer warning against certain acts
Corroborate - Answer establish your strengths and as with new evidence or that
Defalcation - Answer the fraudulent appropriation of funds are property entrusted to your care but
actually owned by someone else
Disadvantages over other business structures - Answer~. If a loss on our suffers all of the Lost
~ cannot obtain capital from others (partner / shareholder)
~ Unlimited personal liability
Flight of partnership interest - Answer1. We first to write to share in P/L and return of contribute a
shin on dissolution
2. Partnership right is considered personal property
3. Interest meaning rights to use p/s property for p/s purposes
4. is assignable w/o other partners consent
Partnership agreement is controlling - Answer means that standard partnership price apply unless
otherwise stated in the p/s agreement
