ACG FSU Exam 1 Actual Exam

ACG FSU Exam 1 ( ) Actual Exam Questions and Answers A+ Graded

Forms .of .Business .Organization .- .CORRECT .ANSWER-Sole .Proprietorship, .Partnership .and .Corporation

Sole .Proprietorship .- .CORRECT .ANSWER-Simple .to .establish, .Owner .controlled .and .Tax .advantages

Partnership .- .CORRECT .ANSWER-Simple .to .establish, .Shared .control, .Broader .skills .and .resources .and .Tax .advantages

Corporation .- .CORRECT .ANSWER-Easier .to .transfer .ownership, .Easier .to .increase .funds, .No .personal .liability

What .is .a .corporation? .- .CORRECT .ANSWER-An .incorporated .business .entity .that .has .filed .articles .of .incorporation .in .a .state .of .domicile

What .are .the .advantages .of .a .corporation? .- .CORRECT .ANSWER-They .can .attract .large .amounts .of .capital .investment Allows .for .an .easy .transfer .of .ownership Can .attract .professional .management Provides .stockholders .with .limited .liability Survives .the .death .of .its .owner(s)

What .are .the .disadvantages .of .a .corporation? .- .CORRECT .ANSWER- Corporations .are .subjected .to .more .government .regulation Shareholders .can .have .difficulty .knowing .whether .management .is .making .decisions .in .shareholder's .best .interest Corporations .are .subjected .to .income .taxation .(double .taxation)

Accounting .- .CORRECT .ANSWER-The .info .system .that .identifies, .record .and .communicates .the .economic .events .of .an .organization .to .interested .users

What .is .the .two .groups .for .accounting? .- .CORRECT .ANSWER-Internal .Users .and .External .Users

Internal .Users .- .CORRECT .ANSWER-Work .inside .of .a .business .that's .being .examined Ex) .Marketing, .Management, .Finance .and .Human .Resources

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External .Users .- .CORRECT .ANSWER-People .who .are .not .employees .of .the .business Ex) .Investors .(Shareholders) .and .Creditors .(Bankers)

What .is .the .purpose .of .accounting? .- .CORRECT .ANSWER-To .provide .economic .information .as .inputs .for .decision .making .by .used .of .the .info

Sarbanes-Oxly .Act .of .2002 .resulted .in .- .CORRECT .ANSWER-Top .management .must .now .certify .the .accuracy .of .financial .info Penalties .for .fraudulent .activity .was .increased Independence .of .auditors .was .increased Increased .oversight .by .the .board .of .directors .must .occur, .including .the .board's .selection .and .supervision .of .the .independent .auditor

All .Businesses .are .involved .in .- .CORRECT .ANSWER-Financing, .Investing .and .Operating

Financing .Activities .- .CORRECT .ANSWER-Borrowing .money .(debt .financing) .and .Issuing .(selling) .shares .of .stock .for .cash

Notes .payable .are .due ._______ .and .bonds .payable .are .due .______ .- .CORRECT .ANSWER-Sooner; .Later

Investing .Activities .- .CORRECT .ANSWER-Purchase .of .resources .a .company .needs .to .operate

Items .that .are .commonly .affected .in .Operating .Activities .- .CORRECT .ANSWER- Revenues, .Inventory, .Receivables, .Expenses, .Liabilities, .Net .income .and .Net .loss

Revenues .- .CORRECT .ANSWER-Amounts .earned .from .the .sales .of .products

Inventory .- .CORRECT .ANSWER-Goods .available .for .sale .to .customers

Receivables .- .CORRECT .ANSWER-Right .to .receive .money .from .another .party

Expenses .- .CORRECT .ANSWER-Cost .of .assets .consumed .or .services .used

Liabilities .- .CORRECT .ANSWER-Arising .from .expenses .and .represent .amount .owed .to .another .party

Net .income .- .CORRECT .ANSWER-The .excess .of .revenues .over .expenses

Net .loss .- .CORRECT .ANSWER-The .excess .of .expenses .over .revenues

What .are .the .financial .statements? .- .CORRECT .ANSWER-Income .Statement, .Statement .of .Shareholders' .Equity, .Balance .Sheet .and .Statement .of .Cash .Flows

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