ACCT 2110 AUBURN EXAM 1 QUESTIONS WITH
VERIFIED ACCURATE ANSWERS
Accounting - Answers -The process of planning, recording, analyzing, and interpreting
financial information.
External Users - Answers -Persons using accounting information who are not directly
involved in running the organization.
Internal Users - Answers -Persons using accounting information who are directly
involved in managing the organization.
Sole Proprietorship - Answers -business owned and operated by one person. Makes up
roughly 70% of all businesses.
Partnership - Answers -a business organization owned by two or more persons who
agree on a specific division of responsibilities and profits
Corporation - Answers -A business owned by stockholders who share in its profits but
are not personally responsible for its debts
privately held - Answers -ownership is restricted to a small group of investors
publicly held - Answers -a business organization that has hundreds, if not thousands, of
owners who can exchange their ownership interests on public exchanges
Limited Liability Company (LLC) - Answers -a form of business ownership that offers
both limited liability to its owners and flexible tax treatment
Financing Activities - Answers -Cash flow activities that include (a) obtaining cash from
issuing debt and repaying the amounts borrowed and (b) obtaining cash from
stockholders, repurchasing shares, and paying dividends.
Liabilities - Answers --bank loan
-debt securities (bonds)
-goods on credit from suppliers
Equity - Answers -ownership contributions (stocks)
Investing Activities - Answers -Includes cash transactions involving the purchase and
sale of long-term assets and current investments.
VERIFIED ACCURATE ANSWERS
Accounting - Answers -The process of planning, recording, analyzing, and interpreting
financial information.
External Users - Answers -Persons using accounting information who are not directly
involved in running the organization.
Internal Users - Answers -Persons using accounting information who are directly
involved in managing the organization.
Sole Proprietorship - Answers -business owned and operated by one person. Makes up
roughly 70% of all businesses.
Partnership - Answers -a business organization owned by two or more persons who
agree on a specific division of responsibilities and profits
Corporation - Answers -A business owned by stockholders who share in its profits but
are not personally responsible for its debts
privately held - Answers -ownership is restricted to a small group of investors
publicly held - Answers -a business organization that has hundreds, if not thousands, of
owners who can exchange their ownership interests on public exchanges
Limited Liability Company (LLC) - Answers -a form of business ownership that offers
both limited liability to its owners and flexible tax treatment
Financing Activities - Answers -Cash flow activities that include (a) obtaining cash from
issuing debt and repaying the amounts borrowed and (b) obtaining cash from
stockholders, repurchasing shares, and paying dividends.
Liabilities - Answers --bank loan
-debt securities (bonds)
-goods on credit from suppliers
Equity - Answers -ownership contributions (stocks)
Investing Activities - Answers -Includes cash transactions involving the purchase and
sale of long-term assets and current investments.
