intro to accounting chapter1

Question 1

trading business

Answer 1

buys and sells goods(supermarket)

Question 2

service business

Answer 2

provides service (hair salon)

Question 3

owners

Answer 3

contribute capital to the biz and make decision whether to continue to invest in the biz

Question 4

suppliers

Answer 4

supply goods/services to the biz
whether to sell to the biz depending on it´s ability to pay

Question 5

sole proprietorship

Answer 5

owned and run by 1 person who contributes capital to set up the biz
less likely for banks and other lenders to loan money

Question 6

role of accounting

Answer 6

accounting provides accounting info for stakeholders to make decisions on the management of resources and performance of biz

Question 7

role of accountants

Answer 7

accountants are stewards of biz who set up the accounting infosystem to provide accounting info for stakeholders decision making

Question 8

professional ethnics

Answer 8

an accountant with integrity is straightforward and honest
an accountant who is objective will not let bias and undue influence of others decide his/her pro judgement