TAMU ACCT 229 - EXAM 1 WITH
QUESTIONS AND 100% CORRECT
SOLUTIONS 2025 NEW UPDATE A+
GUARANTEED!!!
What are the 3 types of businesses?
Answer: Sole proprietorship, partnership, corporation.
What is unlimited liability?
Answer: Sole proprietorship and partnership.
What is limited liability?
Answer: Corporation.
What is a Sole Proprietorship?
Answer: A business with one owner.
Advantage: Easy to form.
Separate entity for accounting purposes: Yes.
Separate entity for legal and tax purposes: No.
What is a Partnership?
Answer: A business with two or more owners.
Separate entity for accounting purposes: Yes.
Separate entity for legal and tax purposes: No.
What is a Corporation?
Answer: A business incorporated under the laws of a particular state.
Advantages: Limited liability, continuity of life, ease in transfer of stock (ownership),
opportunity to raise large amounts of money by selling shares of stock to a large number of
people.
, What are the 3 types of business activities?
Answer: Financing, investing, operating.
What are Operating Activities?
Answer: Everyday activities, such as selling inventory and paying employees.
What are Investing Activities?
Answer: Activities that help grow the company, such as buying buildings, equipment, vehicles,
and fixtures.
What are Financing Activities?
Answer: Activities that describe how you pay for your growth, such as borrowing money
(temporary financing) and issuing stock (permanent financing).
What are the 4 financial statements?
Answer:
1. Income statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows
What does a Balance Sheet show?
Answer: It shows the financial position of a company at a point in time. A = L + SHE.
What are Assets?
Answer: What a company owns or what is owed to a company.
What are Liabilities?
Answer: What the company owes.
QUESTIONS AND 100% CORRECT
SOLUTIONS 2025 NEW UPDATE A+
GUARANTEED!!!
What are the 3 types of businesses?
Answer: Sole proprietorship, partnership, corporation.
What is unlimited liability?
Answer: Sole proprietorship and partnership.
What is limited liability?
Answer: Corporation.
What is a Sole Proprietorship?
Answer: A business with one owner.
Advantage: Easy to form.
Separate entity for accounting purposes: Yes.
Separate entity for legal and tax purposes: No.
What is a Partnership?
Answer: A business with two or more owners.
Separate entity for accounting purposes: Yes.
Separate entity for legal and tax purposes: No.
What is a Corporation?
Answer: A business incorporated under the laws of a particular state.
Advantages: Limited liability, continuity of life, ease in transfer of stock (ownership),
opportunity to raise large amounts of money by selling shares of stock to a large number of
people.
, What are the 3 types of business activities?
Answer: Financing, investing, operating.
What are Operating Activities?
Answer: Everyday activities, such as selling inventory and paying employees.
What are Investing Activities?
Answer: Activities that help grow the company, such as buying buildings, equipment, vehicles,
and fixtures.
What are Financing Activities?
Answer: Activities that describe how you pay for your growth, such as borrowing money
(temporary financing) and issuing stock (permanent financing).
What are the 4 financial statements?
Answer:
1. Income statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows
What does a Balance Sheet show?
Answer: It shows the financial position of a company at a point in time. A = L + SHE.
What are Assets?
Answer: What a company owns or what is owed to a company.
What are Liabilities?
Answer: What the company owes.
