ACCOUNTING 200 EXAM #1 STUDY GUIDE 2025 QUESTIONS AND ANSWERS

ACCOUNTING 200 EXAM #1 STUDY
GUIDE 2025 QUESTIONS AND ANSWERS




Proprietorships (Pro's and Cons) - ANS Pro's:
Easy to set up
Owner Control
Lower Taxes


Cons:
Personal Liabilities
Hard to transfer ownerships



Partnerships (Pro's and Con's) - ANS Pro's:
Easy to set up
Shared Control
Lower Taxes
Broader Resources


Con's:
Personal Liability
Hard to transfer Ownership




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, Corporations (Pro's and Con's) - ANS Pro's:
Easy to transfer ownership
Easy to raise funds
No personal liabilities


Con's:
Higher taxes
Harder to set up



Income Statement formula - ANS Revenue - Expenses = Net Income



Statement of Retained Earnings - ANS Beginning RE's + Net Income - Dividends = Ending
Retained Earnings



Balance Sheet - ANS Assets = Liabilities + Shareholders Equity (Common Stock + Ending RE's



If Assets = $6,000 and SE = $2,000 L= ? - ANS Liabilities =$4,000


If Liabilities go up $4,000 and SE comes down $1,000 what must happen to Assets to remain in
balance? - ANS Assets must go up $3,000



(FASB) Financial Accounting Standards Board - ANS US standard setting body



(GAAP) Generally Accepted Accounting Principles - ANS US rules for financial reporting



(IASB) International Accounting Standards Board - ANS International standards setting body



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