CSU ACT 205 EXAM 1 2025 QUESTIONS AND ANSWERS

CSU ACT 205 EXAM 1 2025
QUESTIONS AND ANSWERS


Type of Business Organization - ....ANSWER ...-Sole Proprietorship


-Simple to establish

-owner controlled

-tax advantages


Type of Business Organization - ....ANSWER ...-Partnerships


-simple to establish

-shared control

-broader skills and resources

-tax advantages


Type of Business Organization - ....ANSWER ...-Corporations


-easier to transfer ownership

-easier to raise funds



....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1

, -no personal liability


Primary users of accounting information - ....ANSWER ...-internal and

external


internal users - ....ANSWER ...-The organization's


executives, managers,

other employees


external users - ....ANSWER ...-investors (i.e.,


stockholders), creditors

(i.e., lenders), regulators


internal users --> managerial accounting - ....ANSWER ...-Focuses on the

methods

accountants use to provide

information to the organization's

internal users


external users --> Financial accounting - ....ANSWER ...-Deals with: 1)

measuring business

activities; and 2) communicating



....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2