UNLV ACC 201 EXAM QUESTIONS WITH
CORRECT ANSWERS
Sole Proprietorship - CORRECT ANSWER✔✔-Business organization owned by one
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person. The owner is personally liable for all debts of the business.
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Partnership - CORRECT ANSWER✔✔-Business organization owned by two or more
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people. Each partner is personally liable for all debts of the business.
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Corporation - CORRECT ANSWER✔✔-A separate legal entity. Owners of
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corporations (stockholders) are not personally liable for debts of the corporation.
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Accounting - CORRECT ANSWER✔✔-is an information system designed by an
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organization to capture (analyze, record, and summarize) the activities affecting
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its financial condition and performance and then report the results to decision
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makers, both inside and outside the organization.
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Basic Accounting Equation - CORRECT ANSWER✔✔-Assets = Liabilities +
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Stockholders Equity |
The Accounting system - CORRECT ANSWER✔✔-1. Operating, investing, and
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financing activities. |
2. Accounting system
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Accounting reports containing - financial and managerial
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, Financial is - CORRECT ANSWER✔✔-External users ( creditors, investors, etc. )
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Managerial is - CORRECT ANSWER✔✔-Internal users ( Managers, supervisors, etc.
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)
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Creditors - CORRECT ANSWER✔✔-Suppliers, Banks, and anyone to whom money
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is owed.
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Investors - CORRECT ANSWER✔✔-Existing and potential stockholders.
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Stockholders look to accounting information to asses the financial strength of a
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business and, ultimately, to estimate its value.
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Directors - CORRECT ANSWER✔✔-Short title for members of a company's board
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of directors.
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Separate Entity Assumption - CORRECT ANSWER✔✔-One should always
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separately record the transactions of a business and its owners. Otherwise, there
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is a considerable risk that the transactions of the two will become intermingled.
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Asset - CORRECT ANSWER✔✔-An economic resource presently controlled by the
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company; it has measurable value and is expected to benefit the company by
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producing cash inflows or reducing cash outflows in the future.
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Liabilities - CORRECT ANSWER✔✔-Measurable amounts that the company owes
| | | | | | | | |
to creditors.
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CORRECT ANSWERS
Sole Proprietorship - CORRECT ANSWER✔✔-Business organization owned by one
| | | | | | | | |
person. The owner is personally liable for all debts of the business.
| | | | | | | | | | |
Partnership - CORRECT ANSWER✔✔-Business organization owned by two or more
| | | | | | | | |
people. Each partner is personally liable for all debts of the business.
| | | | | | | | | | | |
Corporation - CORRECT ANSWER✔✔-A separate legal entity. Owners of
| | | | | | | | |
corporations (stockholders) are not personally liable for debts of the corporation.
| | | | | | | | | |
Accounting - CORRECT ANSWER✔✔-is an information system designed by an
| | | | | | | | | |
organization to capture (analyze, record, and summarize) the activities affecting
| | | | | | | | | |
its financial condition and performance and then report the results to decision
| | | | | | | | | | | |
makers, both inside and outside the organization.
| | | | | |
Basic Accounting Equation - CORRECT ANSWER✔✔-Assets = Liabilities +
| | | | | | | | |
Stockholders Equity |
The Accounting system - CORRECT ANSWER✔✔-1. Operating, investing, and
| | | | | | | | |
financing activities. |
2. Accounting system
| | |
Accounting reports containing - financial and managerial
| | | | | |
, Financial is - CORRECT ANSWER✔✔-External users ( creditors, investors, etc. )
| | | | | | | | | |
Managerial is - CORRECT ANSWER✔✔-Internal users ( Managers, supervisors, etc.
| | | | | | | | |
)
|
Creditors - CORRECT ANSWER✔✔-Suppliers, Banks, and anyone to whom money
| | | | | | | | | |
is owed.
|
Investors - CORRECT ANSWER✔✔-Existing and potential stockholders.
| | | | | | |
Stockholders look to accounting information to asses the financial strength of a
| | | | | | | | | | | |
business and, ultimately, to estimate its value.
| | | | | |
Directors - CORRECT ANSWER✔✔-Short title for members of a company's board
| | | | | | | | | | |
of directors.
|
Separate Entity Assumption - CORRECT ANSWER✔✔-One should always
| | | | | | | |
separately record the transactions of a business and its owners. Otherwise, there
| | | | | | | | | | | |
is a considerable risk that the transactions of the two will become intermingled.
| | | | | | | | | | | |
Asset - CORRECT ANSWER✔✔-An economic resource presently controlled by the
| | | | | | | | | |
company; it has measurable value and is expected to benefit the company by
| | | | | | | | | | | | |
producing cash inflows or reducing cash outflows in the future.
| | | | | | | | |
Liabilities - CORRECT ANSWER✔✔-Measurable amounts that the company owes
| | | | | | | | |
to creditors.
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