ACG 2021 FSU Exam 1 (2025) Actual Exam Questions and Answers A+ Graded
Forms .of .Business .Organization .- .CORRECT .ANSWER-Sole .Proprietorship, .Partnership .and .Corporation
Sole .Proprietorship .- .CORRECT .ANSWER-Simple .to .establish, .Owner .controlled .and .Tax .advantages
Partnership .- .CORRECT .ANSWER-Simple .to .establish, .Shared .control, .Broader .skills .and .resources .and .Tax .advantages
Corporation .- .CORRECT .ANSWER-Easier .to .transfer .ownership, .Easier .to .increase .funds, .No .personal .liability
What .is .a .corporation? .- .CORRECT .ANSWER-An .incorporated .business .entity .that .has .filed .articles .of .incorporation .in .a .state .of .domicile
What .are .the .advantages .of .a .corporation? .- .CORRECT .ANSWER-They .can .attract .large .amounts .of .capital .investment Allows .for .an .easy .transfer .of .ownership Can .attract .professional .management Provides .stockholders .with .limited .liability Survives .the .death .of .its .owner(s)
What .are .the .disadvantages .of .a .corporation? .- .CORRECT .ANSWER- Corporations .are .subjected .to .more .government .regulation Shareholders .can .have .difficulty .knowing .whether .management .is .making .decisions .in .shareholder's .best .interest Corporations .are .subjected .to .income .taxation .(double .taxation)
Accounting .- .CORRECT .ANSWER-The .info .system .that .identifies, .record .and .communicates .the .economic .events .of .an .organization .to .interested .users
What .is .the .two .groups .for .accounting? .- .CORRECT .ANSWER-Internal .Users .and .External .Users
Internal .Users .- .CORRECT .ANSWER-Work .inside .of .a .business .that's .being .examined Ex) .Marketing, .Management, .Finance .and .Human .Resources
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External .Users .- .CORRECT .ANSWER-People .who .are .not .employees .of .the .business Ex) .Investors .(Shareholders) .and .Creditors .(Bankers)
What .is .the .purpose .of .accounting? .- .CORRECT .ANSWER-To .provide .economic .information .as .inputs .for .decision .making .by .used .of .the .info
Sarbanes-Oxly .Act .of .2002 .resulted .in .- .CORRECT .ANSWER-Top .management .must .now .certify .the .accuracy .of .financial .info Penalties .for .fraudulent .activity .was .increased Independence .of .auditors .was .increased Increased .oversight .by .the .board .of .directors .must .occur, .including .the .board's .selection .and .supervision .of .the .independent .auditor
All .Businesses .are .involved .in .- .CORRECT .ANSWER-Financing, .Investing .and .Operating
Financing .Activities .- .CORRECT .ANSWER-Borrowing .money .(debt .financing) .and .Issuing .(selling) .shares .of .stock .for .cash
Notes .payable .are .due ._______ .and .bonds .payable .are .due .______ .- .CORRECT .ANSWER-Sooner; .Later
Investing .Activities .- .CORRECT .ANSWER-Purchase .of .resources .a .company .needs .to .operate
Items .that .are .commonly .affected .in .Operating .Activities .- .CORRECT .ANSWER- Revenues, .Inventory, .Receivables, .Expenses, .Liabilities, .Net .income .and .Net .loss
Revenues .- .CORRECT .ANSWER-Amounts .earned .from .the .sales .of .products
Inventory .- .CORRECT .ANSWER-Goods .available .for .sale .to .customers
Receivables .- .CORRECT .ANSWER-Right .to .receive .money .from .another .party
Expenses .- .CORRECT .ANSWER-Cost .of .assets .consumed .or .services .used
Liabilities .- .CORRECT .ANSWER-Arising .from .expenses .and .represent .amount .owed .to .another .party
Net .income .- .CORRECT .ANSWER-The .excess .of .revenues .over .expenses
Net .loss .- .CORRECT .ANSWER-The .excess .of .expenses .over .revenues
What .are .the .financial .statements? .- .CORRECT .ANSWER-Income .Statement, .Statement .of .Shareholders' .Equity, .Balance .Sheet .and .Statement .of .Cash .Flows
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