100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Accounting 101: Exam 1 || with 100% Errorless Solutions. CA$15.80   Add to cart
Quickly navigate to
Preview
  2.  
  3. Accounting 101:
  4.  
  5. Accounting 101:

Exam (elaborations)

Accounting 101: Exam 1 || with 100% Errorless Solutions.
 7 views  0 purchase
  • Course
  • Accounting 101:
  • Institution
  • Accounting 101:

3 Types of business correct answers Sole Proprietorship, Partnership, Corporation Sole Proprietorship correct answers One of the three types of business. It is a business owned by one person. Pros: You are in control, simple to establish, tax advantages Cons: Proprietor is liable, financing m...

[Show more]

Preview 2 out of 7  pages

Document information

  • August 9, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • 3 types of business

Written for

  • Accounting 101:
  • Accounting 101:

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

Accounting 101: Exam 1 || with 100% Errorless Solutions.
3 Types of business correct answers Sole Proprietorship, Partnership, Corporation

Sole Proprietorship correct answers One of the three types of business. It is a business owned by
one person.
Pros: You are in control, simple to establish, tax advantages
Cons: Proprietor is liable, financing may be difficult, Transfer of ownership may be difficult.

Partnership correct answers One of the three types of business. It is a business owned by two
people.
Pros: The two people are completely in control, tax advantages, simple to establish, broader
skills and resources.
Cons: Liable for all business debts/claims, transfer of ownership may be difficult.

Corporation correct answers One of the three types of business. Company is controlled by people
with the most stock. Public company.
Pros: Easier to finance, lower liability, easier to change ownership
Cons: unfavorable tax treatment

Unlimited vs. Limited Liability correct answers

Assets correct answers Resources owned by the entity

Liabilities correct answers Amounts owed to creditors, obligations of the entity.

Stockholders' Equity correct answers Common Stock - amount paid in by stockholders for stock.
Retained Earnings - profit retained in the corporation.

Revenue correct answers Increases in assets resulting from sell of products or services

Expenses correct answers Costs for use of assets or services in the revenue generating process

Net Income or Loss correct answers Revenues less Expenses

Financing Activities correct answers A business activity. It includes: borrowing money, selling
stock, paying dividends to stockholders...
Affects Liabilities (notes payable), Stockholders' Equity (retained earnings)

Investing Activities correct answers A business activity. Invest in assets necessary to operate
business. Ex: buying a factory/machinery. Most affects assets, PPE, Investments.

Operating Activities correct answers A business activity. Use of assets to earn revenue. Costs
(expenses) associated with generating revenue. Most affects: assets, liabilities, expenses,
revenue, accounts receivable/payable.

, Balance Sheet Components (Simple) correct answers Report of a company's assets, liabilities,
and stockholders' equity at a specific point in time. Assets = Liabilities + Stockholders' Equity

Single-Step Income Statement correct answers Report of net income over a period of time.
Revenues - Expenses = Net Income

Retained Earnings Statement correct answers Shows amounts of retained earnings through
causes and changes over time. Retained earnings (beg.) + Net Income - Dividends = Retained
earnings (end)

Statement of Cash Flow correct answers Shows info about cash receipts and payments over a
period of time. Cash flow from Operating, Investing, and Financing activities.

Interrelationships of the Financial Statements correct answers Retained Earnings Statement relies
on info from the Income Statement (Net Income)
Balance Sheet and Retained Earnings are interrelated
Balance Sheet and Statement of Cash Flow are interrelated

Internal Users of Financial Statements correct answers People who are directly involved inside
the company: Management, Employees, Owners.

External Users of Financial Statements correct answers People who are not member of the
company, but deal with it in some way: Customers, Creditors, Tax Authorities, Investors,
Regulatory Authorities.

Current Assets vs. Long-term Assets correct answers

Current Liabilities vs. Long-Term Liabilities correct answers

Generally Accepted Accounting Principles (GAAP) correct answers How does a company
decide on the amount and type of financial information to disclose? What reporting format
should a company use?
How should a company measure assets, liabilities, revenues, and expenses?

The rules of accounting.

FASB correct answers Primary Accounting Setting Body in the US: Financial Accounting
Standards Board.

Makes the rules of accounting (GAAP).

SEC correct answers US government agency that oversees financial markets. Securities
Exchange Commission.

Enforces the rules of accounting.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$15.80. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75632 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$15.80
  • (0)
  Add to cart