Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 6E
Summary Introduction
Concept Introduction:
A business can be done under any form of the business organization depending upon the requirement. A sole proprietorship is managed by a single person. The proprietor has unlimited liability and enjoys entire profits of the sole proprietorship. A
To Identify: Type of the business.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Q3)
Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?
Select one:
a.
Corporation
b.
Cartel
c.
Sole proprietorship
d.
General partnership
e.
Limited partnership
This multiple choice question from BUSINESS MATHEMATICS course.just write for me the final answer.
B. Analysis of Information. Presented below are possible advantages and disadvantages. You are to determine in the first column whether the item pertains to an advantage or disadvantage. On the second column, you are to determine the related business organization. Item 1 has been done for you.Information Advantage or DisadvantageBusiness Organization1. In the event of bankruptcy, business creditors can run after the personal assets of the owners.Disadvantage Sole Proprietorship Partnership2. Involvement of more persons in the business, hence more sources of expertise as compared to the most simple business organization.3. Transferability of ownership4. Limited life5. Business organization as a juridical or separate person6. Corporate existence of 50 years, renewable7. Most limited source of funding8. Most regulated business organization9. Double taxation10. Limited liability11. Unlimited liability
MCQS 24
The amount calculated by subtracting total liabilities from total assets is called ___a)Equityb)Revenuec)Expenses
d)None of above
MCQS 25
Which of the following forms of business does not protect owners from business creditors?(a) Partnership(b) Sole proprietorship(c) Limited liability company(d) Both a and b
MCQS 26
Which one of the following statement completely and correctly describes accounting?(a) Recording, classifying and summarizing economic activities in systematic way(b) Recording, classifying and summarizing all activities in useful manner(c) Accounting is the systematic process of recording social activities only(d) Recording, classifying and summarizing economic activities in informal mannerMCQS 27
Purchased goods from Ahmed for cash should be credited to?(a) Account Payable _ Ahmed(b) Cash A/c(c) Purchases A/c(d) Account Receivable _ AhmedMCQS 28
The payment of a liability causes an increase in owners' equity.a)True
b)FalseMCQS 29
Unearned revenue is:a)An…
Chapter 1 Solutions
Financial Accounting: Information for Decisions
Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three types of services typically offered...Ch. 1 - Prob. 8DQCh. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 34DQCh. 1 - Choose from the following term or phrase a through...Ch. 1 - Prob. 2QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Applying the accounting equation A1 Use the...Ch. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 1ECh. 1 - Identifying accounting users and uses C2 Part A....Ch. 1 - Prob. 3ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Determine the missing amount from each of the...Ch. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Use the information in Exercise 1-15 to prepare an...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Prob. 8PSACh. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - Prob. 1SPCh. 1 - Prob. 2BTNCh. 1 - Prob. 7BTNCh. 1 - Prob. 9BTN
Knowledge Booster
Similar questions
- 1. Differentiate the four forms of business organizations: Sole proprietorship General Partnership Limited liability Company Corporations 2. Explain and describe the type of information needed by each of these users: Revenue expenses profitability debt 3. Explain each accounting principles Accrual principle Conservatism principle Consistency principle Cost principle Economic entity principle Full disclosure principle Going concern principle Matching principle Materiality principle Monetary unit principle Reliability principle Revenue recognition principle Time period principle 4. Define and explain each qualitative characteristics of useful financial information: Verifiability Timeliness Understandability Comparability 5. Differentiate the types of business according to its activity: Service business Merchandising business Manufacturing business 6. Name a 10 company according to the three major types of businesses 7. Define the three major elements of accounting equation:…arrow_forwardPART 1.) Please list 2 Sole Proprietorship companies that you know of. What do they sell and where? PART 2.) Please list 2 Partnership companies that you know of. What do they sell and where? PART 3.) Please list 2 Corporation companies that you know of. What do they sell and where? PART 4.) For the Individual Class project of making a business, What business have you decided you would like to create? What are your services? Are you an SP, P or CORP? Please give the details that you have came up with as of yetarrow_forwardMatch each form of business organization with its description. Business Organizations Descriptions 1. Sole proprietorship a. Business owned by two or more persons. 2. Partnership b. Entity legally separate from its owners. 3. Corporation c. Business owned by a single person.arrow_forward
- Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run a coffee shop. They will share any profits or losses that the business generates and will be personally responsible for making good on any debt that their business undertakes. Their business should be classified as a. corporation. b. sole proprietorship. c. partnership. d. none of the above.arrow_forwardQuestion 1: Define and discuss each of the following by providing at least 2 practical examples: a) Limited Partnership; Limited Liability partnership; Professional corporation? b) A friend asked you to reveal important financial information of the company,being a finance manager of the company what would you do? Justify by considering ethics in finance. c) Describemechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?arrow_forwardQuestion 1 Situation 1. She arranges with the company from the company account into a personal bank account held by her in her own name. She uses the funds to finalise some outstanding personal debts.Situation 2. As a director, she receives information that the company is in a serious financial position. She arranges to transfer a larger amount of the assets of the company over a new proprietary company that she formed with the intention of caring on the same business.Situation 3. Contrary to a resolution of the Board and notwithstanding established business practice that limits the credit to $20,000 she allows a trade debtor (who has a history of bad debts) to exceed its credit limits by $25,000. The debtor fails to pay the outstanding amount of $45,000. Can she rely on the business judgment rule in this situation? Required: Has she breached any duties under the Corporation Act in the three (3) situations listed above?arrow_forward
- multiple choice The officer responsible for the firm’s accounting activities, such as corporate accounting, tax management, financial accounting, and cost accounting is the(a)Treasurer.(b)Controller.(c)Foreign exchange manager.(d)None of the above.arrow_forward1. (TCO 1) Which of the following was the first private sector entity that set accounting standards in the United States?Accounting Principles BoardCommittee on Accounting ProcedureFinancial Accounting Standards BoardAICPA 2. (TCO 2) The enhancing qualitative characteristic of understandability means that information should be understood by those who are experts in the interpretation of financial information.those who have a reasonable understanding of business and economic activities.financial analysts.CPAs. 3. (TCO 3) Incurring an expense for advertising on an account would be recorded by debiting liabilities.crediting assets.debiting an expense.debiting assets. 4. (TCO 3) When a business makes an end-of-period adjusting entry with a debit to supplies expense, the usual credit entry is made to accounts payable.supplies.cash.retained earnings. 5. (TCO 3) Temporary accounts would not include salaries payable.depreciation expense.supplies expense.cost of goods sold.arrow_forwardV3. The owner of a company asks you if he can charge all his personal expenses to his business. He said that he owns the company anyway. Explain to the business owner the business entity assumption and the ethical considerations of his idea. (Include references please)arrow_forward
- Identifying types of business organizations Chloe Michaels plans on opening Chloe Michaels Floral Designs. She is considering the various types of business organizations and wishes to organize her business with unlimited life and wants owners of the business to not be held personally liable for the business’s debts. Additionally, Chloe wants the business to be a separate taxable entity. Which type of business organization will meet Chloe’s needs best?arrow_forwardINSTRUCTIONS: Analyze the given scenarios and answer the following items. Answers must be justified in accordance with the following: Identify the type of business; Distinguish the accounting standards applicable for the identified business; and (e.g. IAS 4 or IFRS 7) Identify the type of practice the CPA is engaged (Commerce and industry, academe, public, government) PROFILE 1 Mr. Janard Lindio is the owner of Clifford Construction Company. Ms. Regine Joy Develos, a CPA working for Mr. Lindio, is tasked to do things such as financial reporting and analysis. She constantly reviews the source documents and makes sure that the financial statement serves its purpose. PROFILE 2 Baby Jane Justianiane is the owner of Boja General Merchandise, which is the main distributor of shoes and apparels in all areas of Taguig. Her accountant Anjielica Cavs, who is a CPA, is assigned to monitor and ensure that their products meet the desired criteria for quality. She also ensures that their…arrow_forwardPartnerships and proprietorships: Question content area bottom Part 1 A. are separate legal entities from their owners, are for small to large businesses, and for financial reporting purposes keep the business affairs separate from those of the owners. B. are not separate legal entities from their owners, are for small to large businesses, and for financial reporting purposes keep the business affairs separate from those of the owners. C. are separate legal entities from their owners, are for small businesses, and for financial reporting purposes do not keep the business affairs separate from those of the owners. D. are not separate legal entities from their owners, are for small to large businesses, and for financial reporting purposes do not keep the business affairs separate from those of the owners.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning