GENERALLY- ACCEPTED ACCOUNTING PRINCIPLES AND FORMS OF BUSINESS ORGANIZATION

Question 1

A business owned and operated by two or more persons. Who bind themselves to contribute money, property, or industry to a common fund

Answer 1

Partnership

Question 2

Has a single owner called the proprietor (who generally is the manager)?

Answer 2

Sole Proprietorship

Question 3

Owned by its stockholders.

Answer 3

Corporation

Question 4

A principle has objectivity to the extent that the resulting information is not influenced by the personal bias or judgment of those who furnish it.

Answer 4

Objectivity

Question 5

A principle is relevant to the extent that it results in information that is meaningful and useful to the users of the accounting information.

Answer 5

Relevance.

Question 6

A principle has feasibility to the extent that it can be implemented without undue complexity or cost.

Answer 6

Feasibility