ch 1 multiple choice – Flashcards
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Comprises 70% of business entities in the United States
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Proprietorship
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Generates 90% of business revenues
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Corporation
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Owned by two or more individuals
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Partnership
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Organized as a separate legal taxable entity
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Corporation
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Easy and cheap to organize
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Proprietorship
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Often used as an alternative to a partnership
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Limited liability company (LLC)
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Used by large business
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Corporation
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Has the ability to obtain large amounts of resources
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Corporation
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Offers tax and legal liability advantages for owners
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Limited liability company (LLC)
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Financial reports are used by
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management creditors investors
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Two common areas of accounting that respectively provide information to internal and external users are
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managerial accounting and financial accounting
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Which type of accountant typically practices as an individual or as a member of a public accounting firm?
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Certified Public Accountant
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Which of the following is a manufacturing business?
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Ford Motors.
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Which of the following group of companies are all examples of a merchandising business?
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GameStop, Best Buy, Gap
