chpt 1 - SO1Chapter 1 Introduction to Financial Statements...

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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. The liability of corporate stockholders is limited to the _____. Answer: Amount of their investment
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. A business organized as a separate legal entity owned by stockholders is a _____. Answer: Corporation
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. Which form of business in the U.S. generates more revenue than the others? Answer: Corporation
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. The ____ form of business organization generally receives favorable tax treatment relative to a corporation. Answer: Proprietorship
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. Who are the owners of a corporation? Answer: Stockholders
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. Which form of business organization is a common form of organization for service-type businesses? Answer: Partnership
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. What are some advantages of the corporate form of business organization? Answer: No personal liability, easy to transfer ownership, and easy to raise funds.
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. The information system that identifies, records and communicates the economic events of an organization to interested users is called … Answer: Accounting
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SO1 —Chapter 1 Introduction to Financial Statements Describe the primary forms of business organization. List the three forms of business organization. Answer: Sole proprietorship, partnership and corporation
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SO2 —Chapter 1 Introduction to Financial Statements Identify the users and uses of accounting. List a major internal user of information. Answer: Management of a business enterprise
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SO2 —Chapter 1 Introduction to Financial Statements Identify the users and uses of accounting. The information needs and questions of ___ users vary considerably. Answer: External
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SO2 —Chapter 1 Introduction to Financial Statements Identify the users and uses of accounting. Name two primary external users of accounting information. Answer: Investors and creditors
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SO2 —Chapter 1 Introduction to Financial Statements Identify the users and uses of accounting. Give two examples of internal users of accounting data. Answer: President of company, Production Manager, Merchandising Inventory Clerk, etc.
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—Chapter 1 Introduction to Financial Statements Identify the users and uses of accounting. Which group would use
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chpt 1 - SO1Chapter 1 Introduction to Financial Statements...

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