Bab 1

Question 1

What is acc?

Answer 1

The art of classifying, recording, and summarizing trans and buss events in monetary terms and interpreting the results to interested parties, enable them to make decisions.

Question 2

What is bookeping?

Answer 2

The mechanical aspects of acc such as classify, record, summarize and interpret of trans systematically.

Question 3

What the 4 stages of acc process?

Answer 3

Classifying
Recording
Summarizing
Interpreting

Question 4

What is fundamental of financial statements ?

Answer 4

Provide useful info to various users
To know the financial status of the organization whether it is making profit or running at loss
The corrective actions to be taken
As reference, useful in making decision

Question 5

What is the user of financials statement?

Answer 5

1) internal - work in organizations such as owners, managers or employees
2)external - indirectly involved with organizations such as a investors, suppliers, creditors, clients and customers. // regulatory authorities are considered.

Question 6

Accounting cycles?

Answer 6

Trans - source doc - journals - ledgers - trials balance - adjustments - financial statements

Question 7

What is the 6 Users of FS?

Answer 7

Owners
Managers
Employess
Creditors/supplier
Customers

Question 8

Explains each of the users of fs?

Answer 8

Owners - to know the finan status and their interest in the buss

Managers - to know the finan status and have the info necessary to make buss decisions

Employess - to know the job securities and other benefits such as bonuses through the relevant info towards the buss stability

Creditors/supliers - interested to know the ability of buss to pay for goods and services supplied.

Customers - to identify the ability of the buss that produce quality products and services.

Question 9

What are the uses of F.S ?

Answer 9

Investors - to know info of financial position of buss, future earning capacity and the ability of the management F.analysts - analyze the performance of company to provides advices in investment matters.
Government -needes reports for taxes purposes
Others - aca & research pur

Question 10

The main differences between a sole proprietorship, partnership, and corporation are in ownership, legal structure, and tax implications?

Answer 10

Ownership
A sole proprietorship is owned by one person, a partnership is owned by two or more people, and a corporation is owned by shareholders.
Legal structure
A sole proprietorship is not a separate legal entity from the owner, while a partnership is an unincorporated business, and a corporation is a separate legal entity from its shareholders.
Tax implications
Proprietors and partners report business income with their personal income, while corporations are separate legal entities and report taxes separately

Question 11

Details differences?

Answer 11

Sole proprietorship
The owner has unlimited liability for the business and is entitled to all profits. The business ends when the owner decides to stop it or dies. Sole proprietorships are common for small businesses, freelancers, and the self-employed.
Partnership
Partners contribute resources to the business, such as money, property, labor, or skill, and share in the profits and losses. A written agreement should outline the partners’ roles, rights, and responsibilities.
Corporation
Shareholders purchase shares of stock to become owners of the corporation. They receive a share of the profits, often in exchange for an investment of money or labor. Shareholders elect a board of directors to manage the corporation.