Proprietorship sole prop - Study guides, Class notes & Summaries

What is a sole proprietorship? What are the advantages and disadvantages? correct answersa business owned and usually operated by one person and the simplest form of business to enter, control, and leave advantages- ease of start ofup, pride of ownership, retention of all profits by the sole proprietor, flexibility and possible tax advantages disadvantages- unlimited liability, lack of continuity, lack of money, limited management skills, and difficulty hiring employees how does a partner...

Unit 1.0 Fundamentals of Accounting and Bookkeeping Proprietorship / Sole Prop - Answer- A business owned by one person. Simplest structure and not separate from its owner for legal purposes Partnership - Answer- Business owned by two or more persons, the owners are called partners. Not a separate legal entity. Profit/Loss "Pass through" to owners. Corporation - Answer- Business organized as a separate legal entity Limited Liability Company "LLC" - Answer- Separate Business and l...

Financial Accounting Exam 1 Questions And Well Elaborated Solutions FASB - ANSWER Financial Accounting Standards Board ---sets accounting standards in the U.S. GAAP - ANSWER Generally Accepted Accounting Principals IFRS - ANSWER International Financial Reporting Standards --- non binding/more general than US GAAP IASB - ANSWER International Accounting Standards Board --- sets accounting standards in the rest of the world SEC - ANSWER Securities and Exc...

Licensees have to be experts in all the following? - Answer- Marketing, Valuation, Property Transfer What is farming? - Answer- When licensees concentrate on ONE type, style of property or particular neighborhood In a business brokerage, what is the "going concern value" ? - Answer- (COMBINED ASSETS OF A BUSINESS) value of the business, which includes income, intangible vs tangible, goodwill and value of real property In Construction & Development, tract building is? - Answer- involve...

1. t/f the goal of the shareholders wealth maximization considers the risk of the various financial decisions 2. Profit maximizatiom does not adequately describe the goal of the firm because 3. what is the sales revenue minus cost of goods sold and operating expenses known as for income state- ment purposes` true a. profit maximiza- tion does not re- quire the consider- ation of risk b. proft maximiza- tion ignores the the timing of a pro- ject's return EBIT 4. The debt ratio is a m...

1. Bobby and Sissy got married 2.5 years ago. Since that time, they have lived in Bobby's home. Sissy sold her previous home three years ago and ex- cluded her entire gain ($80,000) at that time. Bob- by and Sissy decided to move to a bigger home this year. As a result, they sold Bobby's home for $500,000 (original cost $150,000). How much of the gain from the sale is taxable? 2. T/F Gambling winnings are included in gross in- come only to the extent that the winnings exceed gambling losses...

1. Samuel wants to do a 1031 exchange. He sold his investment property and has identified the property he'd like to buy next. Within how many days must he close on this property in order for it to qualify as part of the exchange? 2. In which form of co-ownership is a person's own- ership inheritable? 3. How long do prospective tenants have to request a refund after purchasing a rental list? 4. a. 180 b. 30 c.45 d.60 a. He has 45 day...

FEDERAL INCOME TAX EXAM #3 QUESTIONS AND VERIFIED ANSWERS 100% CORRECT Sole Proprietorship - CORRECT ANSWER--Owners have liability for debts -Assets owned in name of the individual -Unincorporated Limitations associated with Sole Prop. - CORRECT ANSWER-Excess Business Loss Limitation and Passive Activity Business Income Deduction criteria - CORRECT ANSWER-Deductions must be directly connected to business activity -Ordinary and necessary(conducive to profit generation) -Reasonable in amount(no...

accounting - info system that measures business activities, processes info into reports/fin statements and communicates the results to decision makers financial accounting - branch of accounting that provides info to external users managerial accounting - branch of accounting that provides info to internal users FASB - Financial Accounting Standards Board ---sets accounting standards in the U.S. GAAP - Generally Accepted Accounting Principals IFRS - International Financial Reporti...