FSU ACG 2021 Exam 1 with all Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
A business owned by a single individual ✔Correct Answer-Sole Proprietorship
Advantages of sole proprietorship and partnership ✔Correct Answer--Easy to start (no
paperwork)
-Total or more control (owner and/or partner)
-Single taxation
-Added skills from Partners (partnership)
Disadvantages of sole proprietorship and partnership ✔Correct Answer--Personal liability (risk
of losing personal assets like car, house, etc.)
-Harder to transfer ownership
-No continuous life (company dies w/ owners)
-Hard to raise money
A business owned by two or more individuals ✔Correct Answer-Partnership
A corporation is a business owned by _______. ✔Correct Answer-Shareholders
An incorporated business entity that has filed articles of incorporation (paperwork) in a state of
domicile ✔Correct Answer-Corporation
Advantages of corporations ✔Correct Answer--Easy to transfer ownership (buy/sell shares)
-Easy to raise money (issue stock)
-No personal liability (most you can lose is the value of the stock)
-Continuous life
Disadvantages of corporations ✔Correct Answer--Tough to start
-Double Taxation (corporation gets taxed on profit to the government and then owners get
taxed on profit)
-No control (shareholders make decisions)
-More government regulations (SEC)
-Principal-Agent problem (CEO make decisions, no input from shareholders)
A piece of paper that grants you ownership of a company for a given price ✔Correct Answer-
Stock
A payment of cash to a shareholder ✔Correct Answer-Dividend
, All three (sole proprietorship, partnership, and corporation) are separate _______ entities.
✔Correct Answer-Accounting
Only a corporation is a separate _______ entity. ✔Correct Answer-Legal
The information system that shows the economic events of a corporation. This system identifies,
records, and communicates all info to interested parties such as stockholders. ✔Correct
Answer-Financial accounting
The money that comes in ✔Correct Answer-Revenues
The money that goes out ✔Correct Answer-Expenses
People within the company (marketing department management, finance dept., human
resource dept., etc.) ✔Correct Answer-Internal users- Managerial accounting
People outside the company (shareholders, customers, creditors, taxing authorities, labor
unions, regulatory authorities, economic planners) ✔Correct Answer-External users- Financial
accounting
An entity that lends you money. For example: a bank ✔Correct Answer-Creditor
Purpose of financial accounting ✔Correct Answer-To provide important information to
decision makers (investors) in a common language. Info in contained in four financial
statements.
Rule that was passed to reduce the amount of frauds with the numbers presented in the
financial statements. ✔Correct Answer-Sarabanes-Oxley Act (SOX) of 2002
What does SOX require to be done? ✔Correct Answer-Requires top management to certify
financial statements and made punishment for misrepresentation more severe.
T/F:
SOX did NOT have an impact on taxes. ✔Correct Answer-True
The person that makes sure the numbers (revenues and expenses) a company produces make
sense ✔Correct Answer-Auditor (an accountant)
Keeps an eye on the CEO. They can influence the decisions made by the CEO. ✔Correct
Answer-Board of directors
Three types of businesses? ✔Correct Answer--Service- haircut
-Merchandising (sells good)- Walmart
-Manufacturing (makes goods)- Apple
Answers |Actual Complete Exam |Already Graded A+
A business owned by a single individual ✔Correct Answer-Sole Proprietorship
Advantages of sole proprietorship and partnership ✔Correct Answer--Easy to start (no
paperwork)
-Total or more control (owner and/or partner)
-Single taxation
-Added skills from Partners (partnership)
Disadvantages of sole proprietorship and partnership ✔Correct Answer--Personal liability (risk
of losing personal assets like car, house, etc.)
-Harder to transfer ownership
-No continuous life (company dies w/ owners)
-Hard to raise money
A business owned by two or more individuals ✔Correct Answer-Partnership
A corporation is a business owned by _______. ✔Correct Answer-Shareholders
An incorporated business entity that has filed articles of incorporation (paperwork) in a state of
domicile ✔Correct Answer-Corporation
Advantages of corporations ✔Correct Answer--Easy to transfer ownership (buy/sell shares)
-Easy to raise money (issue stock)
-No personal liability (most you can lose is the value of the stock)
-Continuous life
Disadvantages of corporations ✔Correct Answer--Tough to start
-Double Taxation (corporation gets taxed on profit to the government and then owners get
taxed on profit)
-No control (shareholders make decisions)
-More government regulations (SEC)
-Principal-Agent problem (CEO make decisions, no input from shareholders)
A piece of paper that grants you ownership of a company for a given price ✔Correct Answer-
Stock
A payment of cash to a shareholder ✔Correct Answer-Dividend
, All three (sole proprietorship, partnership, and corporation) are separate _______ entities.
✔Correct Answer-Accounting
Only a corporation is a separate _______ entity. ✔Correct Answer-Legal
The information system that shows the economic events of a corporation. This system identifies,
records, and communicates all info to interested parties such as stockholders. ✔Correct
Answer-Financial accounting
The money that comes in ✔Correct Answer-Revenues
The money that goes out ✔Correct Answer-Expenses
People within the company (marketing department management, finance dept., human
resource dept., etc.) ✔Correct Answer-Internal users- Managerial accounting
People outside the company (shareholders, customers, creditors, taxing authorities, labor
unions, regulatory authorities, economic planners) ✔Correct Answer-External users- Financial
accounting
An entity that lends you money. For example: a bank ✔Correct Answer-Creditor
Purpose of financial accounting ✔Correct Answer-To provide important information to
decision makers (investors) in a common language. Info in contained in four financial
statements.
Rule that was passed to reduce the amount of frauds with the numbers presented in the
financial statements. ✔Correct Answer-Sarabanes-Oxley Act (SOX) of 2002
What does SOX require to be done? ✔Correct Answer-Requires top management to certify
financial statements and made punishment for misrepresentation more severe.
T/F:
SOX did NOT have an impact on taxes. ✔Correct Answer-True
The person that makes sure the numbers (revenues and expenses) a company produces make
sense ✔Correct Answer-Auditor (an accountant)
Keeps an eye on the CEO. They can influence the decisions made by the CEO. ✔Correct
Answer-Board of directors
Three types of businesses? ✔Correct Answer--Service- haircut
-Merchandising (sells good)- Walmart
-Manufacturing (makes goods)- Apple
