Fundamentals of Financial Accounting and Reporting Each answer is correct, resulting in an excellent performance.

Fundamentals of Financial Accounting and

Reporting Each answer is correct, resulting

in an excellent performance.

Sole Proprietorship - Answer A business organization owned by one person. Easy to set up.

The owner is personally liable for business debts.

Partnership - Answer A business organization owned by more than one person. The partners

are personally liable for business debts.

Corporation - Answer A separate legal entity. Often subject to many regulations. The owners

(shareholders) are not personally liable for business debts.

Accounting - Answer System of analyzing, recording and summarizing the results of a

business's activities and then reporting the results to decision makers.

CPA - Answer In Canada, the general recognized accounting designation is the CPA, which

stands for chartered professional accountant.

Managerial accounting reports - Answer Used inside the company, including detailed

financial plans and reports about the operating performance of the organization.

Financial accounting reports - Answer Used outside the company by creditors, investors, and

others. These reports are financial statements.




1