ACCT 2000 LOWE-ARDOIN EXAM 1 ACTUAL /NEWEST 2026 WELL SORTED QUESTIONS AND ANSWERS /GRADED A+ | Study Guide | A+

ACCT 2000 LOWE-ARDOIN EXAM 1 ACTUAL
/NEWEST 2026 WELL SORTED QUESTIONS
AND ANSWERS /GRADED A+ | Study Guide |
A+
• Sole Proprietorship -✓✓- Generally owned by one person
- Simple to establish
- Owner controlled
- Tax advantages
- Personal Liability

• Partnership -✓✓- Owned by 2 or more people
- Simple to establish
- Shared control
- Broader skills & resources
- Tax advantages
- Personal Liability

• Corporation -✓✓- Easy to transfer ownership
- Easy to raise capital (selling shares of stock)
- No personal liability (BIGGEST ADVANTAGE)
- Pay taxes twice (corporation & stockholders)

• Accounting is the information system that ____________, ___________, and
________________ the economic events of an organization to interested users. -
✓✓IDENTIFIES
RECORDS
COMMUNICATES

• Internal Users -✓✓Managers, Supervisors, Company officials

• External Users -✓✓Investors, Creditors, Regulators

• Financial Scandal led to this Act -✓✓Sarbanes-Oxley Act in 2002 (SOX Act)

• 3 Types of Business Activites -✓✓1. Financing- raising money (or borrowing)

2. Investing (purchase of resources needed to operate)

3. Operating (Day to Day operations)

• Amounts Owed -✓✓Liabilities