Intro to Financial Statements

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a sole proprietorship?

  • A business owned and controlled by two or more persons
  • A business that is traded on an organized stock exchange
  • A business that is a separate legal entity
  • A business owned and controlled by one person (correct)

Which form of business organization is characterized by shared control and broader skills & resources?

  • Sole proprietorship
  • Partnership (correct)
  • Limited liability company
  • Corporation

What is a key characteristic of a corporation?

  • Easier to transfer ownership (correct)
  • Owned and controlled by one person
  • Lower income taxes than proprietorships and partnerships
  • Simple to establish

Which statement about hybrid forms of organization is true?

<p>They combine the tax advantages of partnerships with the limited liability of corporations (C)</p> Signup and view all the answers

Who are the external users of accounting information?

<p>Investors (owners) (A)</p> Signup and view all the answers

What is the purpose of financial information?

<p>To provide inputs for decision-making (D)</p> Signup and view all the answers

What do data analytics help us answer?

<p>What happened &amp; why did it happen (C)</p> Signup and view all the answers

What is a characteristic of limited liability companies (LLCs)?

<p>Combine the tax advantages of partnerships with the limited liability of corporations (D)</p> Signup and view all the answers

What is a common characteristic of all types of companies with regards to data analytics?

<p>Analyzing data, often employing both software and statistics, to draw inferences (C)</p> Signup and view all the answers

What is a characteristic that sets corporations apart from proprietorships and partnerships?

<p>A corporation’s revenue is many times greater than other forms of organization. (B)</p> Signup and view all the answers

What was the purpose of the Sarbanes-Oxley Act (SOX)?

<p>To reduce unethical corporate behavior (C)</p> Signup and view all the answers

In solving an ethical dilemma, what is the first step?

<p>Recognize an ethical situation and the ethical issues involved (C)</p> Signup and view all the answers

What are financing activities primarily focused on?

<p>Raising money through outside sources (C)</p> Signup and view all the answers

What are creditors in the context of debt financing?

<p>The party to whom amounts are owed (A)</p> Signup and view all the answers

What is the main purpose of Step 3 in solving an ethical dilemma?

<p>To identify the alternatives and weigh their impact on stakeholders (A)</p> Signup and view all the answers

What is the role of boards of directors according to the Sarbanes-Oxley Act (SOX)?

<p>To increase the oversight role of boards of directors (A)</p> Signup and view all the answers

What is the primary focus of operating activities?

<p>Performing the day-to-day actions to produce &amp; sell a product (C)</p> Signup and view all the answers

What is the purpose of identifying and analyzing the principal elements in an ethical situation?

<p>To identify the alternatives and weigh their impact on stakeholders. (C)</p> Signup and view all the answers

What are liabilities in the context of debt financing?

<p>Amounts that are owed (B)</p> Signup and view all the answers

What was one of the main impacts of Sarbanes-Oxley Act (SOX) on outside auditors?

<p>Increased penalties for fraudulent financial activity. (C)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser