BA 6000 exam 1 Question and
answers verified to pass 2025/2026
3 types of business organizations and main differences - correct answer ✔1. Partnership: A business
that is owned jointly by two or more individuals but does not issue stock. They have shared control, tax
advantages, increased skills and resources.
2. Sole Proprietorship: A business owned by one person. Simple to set up and maintains control with
owner.
3. Corporation: A business that raises money by issuing shares of stock. Easier to transfer ownership and
raise funds no personal liability
What type of activity are the following (operating/financing/investing)
1. Cash received from customers
2. Cash received from stockholders (dividends)
3. Cash received from issuing new common stock
4. Cash paid to suppliers
5. Cash paid to purchase a new office building - correct answer ✔1. Operating
2. Financing
3. Financing
4. Operating
5. Investing
Auditors Opinion - correct answer ✔An expression about whether financial statements conform with
generally accepted accounting principles.
, Common Stock - correct answer ✔The portion of stockholders' equity that results from receiving cash
from investors.
Accounts Payable
Accounts Receivable - correct answer ✔Obligations to suppliers of goods.
Amounts due from customers.
Creditor - correct answer ✔A party to whom a business owes money.
Stockholder - correct answer ✔A party that invests in common stock.
Accounting Equation (components of it and definition of components) - correct answer ✔Equation:
Assets = Liabilities + Stockholders' Equity
Liabilities: Amounts owed to creditors in the form of debts and other obligations.
Assets: Any resource owned or controlled by a business or an economic entity. It is anything (tangible or
intangible) that can be utilized to produce value and that is held by an economic entity and that could
produce positive economic value.
Stockholders' Equity: The owners' claim to assets.
Certified Public Accountant (CPA) - correct answer ✔An individual who has met certain criteria and is
thus allowed to perform audits of corporations.
answers verified to pass 2025/2026
3 types of business organizations and main differences - correct answer ✔1. Partnership: A business
that is owned jointly by two or more individuals but does not issue stock. They have shared control, tax
advantages, increased skills and resources.
2. Sole Proprietorship: A business owned by one person. Simple to set up and maintains control with
owner.
3. Corporation: A business that raises money by issuing shares of stock. Easier to transfer ownership and
raise funds no personal liability
What type of activity are the following (operating/financing/investing)
1. Cash received from customers
2. Cash received from stockholders (dividends)
3. Cash received from issuing new common stock
4. Cash paid to suppliers
5. Cash paid to purchase a new office building - correct answer ✔1. Operating
2. Financing
3. Financing
4. Operating
5. Investing
Auditors Opinion - correct answer ✔An expression about whether financial statements conform with
generally accepted accounting principles.
, Common Stock - correct answer ✔The portion of stockholders' equity that results from receiving cash
from investors.
Accounts Payable
Accounts Receivable - correct answer ✔Obligations to suppliers of goods.
Amounts due from customers.
Creditor - correct answer ✔A party to whom a business owes money.
Stockholder - correct answer ✔A party that invests in common stock.
Accounting Equation (components of it and definition of components) - correct answer ✔Equation:
Assets = Liabilities + Stockholders' Equity
Liabilities: Amounts owed to creditors in the form of debts and other obligations.
Assets: Any resource owned or controlled by a business or an economic entity. It is anything (tangible or
intangible) that can be utilized to produce value and that is held by an economic entity and that could
produce positive economic value.
Stockholders' Equity: The owners' claim to assets.
Certified Public Accountant (CPA) - correct answer ✔An individual who has met certain criteria and is
thus allowed to perform audits of corporations.
