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Examen
CPA Exam - BEC - Enterprise Risk Management
CPA Exam - BEC - Enterprise Risk Management
Examen
Cpa Exam - Far
PopularCash - Answer Money that is FREE and CLEAR and available to be spend in current 
operations. 
Not Cash: - Answer Security deposits & bond sinking funds 
Three-Month Rule - Answer Highly liquid securities with ORIGINAL maturity dates of 
three months or less are treated as cash. 
Bad Debts - Direct Write-Off Method - Answer - No entry for bad debts until customer 
actually defaults. 
- At default, the cutomer's account is written off. 
- Theoretically weak, matching issue 
- Only allowed if bad ...
Examen
Cpa Exam Bec
CPA EXAM BEC 
 
Sole Proprietorship - ANSWER--Only one owner 
-Business is not a separate legal entity apart from owner 
-Owner does not share decision making power with others 
 
Advantages over other business structures - ANSWER--Simplest to form (no formal filings) and operate 
-Business can be sold without approval from others 
-Owner has right to make all business decisions 
-No need to share profits 
-Profits are taxed only once 
 
Disadvantages over other business structures - ANSWER--If ...