ACCOUNTING 200 EXAM 1 JORDAN
UTK EXAM 100% SOLVED 1 / 2
service business - ANSWERprovides services to customers merchandising business - ANSWERBuys finished goods and sells them to customers manufacturing business - ANSWERmake the products they sell sole proprietor - ANSWERA business owned by one person. All profits and losses go to owner but vulnerable to unlimited liability partnership - ANSWERAt least 2 owners and agreements are put in place regarding profit sharing and liability Corportation - ANSWEROne or more owners and Owners are called stockholders who can Loss up to investment only not personal assets.Can be Public or Private External stakeholders/capital market stakeholders - ANSWERLenders/Creditors: Lend money to the business (want it back w/ interest)
Owners/Stockholders: Invest money in the business (want a return)
Product/Service Market stakeholders - ANSWERsuppliers, consumers, and government stakeholders who collect taxes
internal stakeholders - ANSWERBusiness Managers and Employees: Operate the
business Why accounting is the language pdf business? - ANSWERProvides information to both external and internal stakeholders so they can Evaluate the results of operations, financial position and Evaluate the company's future prospects.Financial Accounting - ANSWERprovides information to external stakeholders for decision making Managerial Accounting - ANSWERprovides info to internal stakeholders Managers - strategy Employees - employment/bonuses
Luca Pacioli - ANSWERFather of double entry accounting also wrote: Summa de
Arithmetica - included several topics including various accounting topics and methods.Accounting Equation - ANSWERAssets (owns) = Liabilities (owe) + Stockholders' Equity (Owner's Interest) Residual Amoun
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