Users of Accntg Info

Question 1

INTERNAL USERS

Answer 1

-Management
-Employees
-Owners or Stockholders

Question 2

EXTERNAL USERS

Answer 2

-CUSTOMERS
-CREDITORS
-POTENTIAL INVESTORS
-GOVERNMENT
-ACADEME
-GENERAL PUBLIC

Question 3

Main source of income of businesses

Answer 3

CUSTOMERS

Question 4

Ex of users:
Pertron clients, people acquiring good or services

Answer 4

CUSTOMERS

Question 5

Providers of additional funds when the initial investment of owners is exhausted; lend resources to business usually in form of money.

Answer 5

CREDITORS

Question 6

Ex. Of users
Banks, Lending institutions, wealthy individuals; sometimes are government can also lend resources to a company.

Answer 6

CREDITORS

Question 7

Provides of additional funds when the initial investment of owners is exhausted; invest resources in the business hoping to earn decent returns.

Answer 7

POTENTIAL INVESTORS

Question 8

Ex. Of users
Wealthy individuals, other businesses planning to invest.

Answer 8

POTENTIAL INVESTORS

Question 9

An external user whose primary role is to regulate businesses; studies financial statements to determine amount of taxes payable.

Answer 9

GOVERNMENT

Question 10

Ex. Of users
Different Gov’t agencies, taxing authorities, government officials.

Answer 10

GOVERNMENT

Question 11

Users accounting information primarily for academic purposes.

Answer 11

ACADEME

Question 12

Citizens and residents of the country even though they do not plan to transact with the business; use financial statements to gauge the condition of the economy.

Answer 12

GENERAL PUBLIC

Question 12

Ex. Of users
Professors, lecturers, students and researchers

Answer 12

ACADEME

Question 13

Ex. Of users
Common people not connected with the company.

Answer 13

GENERAL PUBLIC

Question 14

Employees that can make decisions for the company; considered the brain of the company.

Answer 14

MANAGEMENT

Question 15

Ex, of users
Board of Directors, top management, middle-level managers, supervisors.

Answer 15

MANAGEMENT

Question 16

Person in the company aside from managers and owners or stockholders; do not have authority to implement decisions.

Answer 16

EMPLOYEES

Question 17

Ex of users
Laborers, field workers, non managerial employees.

Answer 17

EMPLOYEES

Question 18

Existing investors of the company; concerned mostly with the profits of the company.

Answer 18

OWNERS OR STOCKHOLDERS

Question 19

FORMS OF BUSINESS ORGANIZATIONS

Answer 19

SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
COOPERATIVES

Question 20

Ex. Of users
Founders of the company, owners, stockholders, partners, proprietors.

Answer 20

OWNERS OR STOCKHOLDERS

Question 21

-A form of business organizations with only one owner
-Has no separate legal existence

Answer 21

SOLE PROPRIETORSHIP

Question 22

-Can take fictitious names (otherwise known as trade names)
-Most common form of business organizations; easiest to establish

Answer 22

SOLE PROPRIETORSHIP

Question 23

-A contract whereby two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.
-May also be formed for the existence of a profession

Answer 23

II. PARTNERSHIP

Question 24

FEATURES OF PARTNERSHIP

Answer 24

1.Separate legal existence
2. Mutual agencies
3. Unlimited liability
4. Limited life
5. Co-ownership of partnership property
6. Partnership agreement

Question 25

OTHER FORMS OF PARTNERSHIP

Answer 25

1. limited partnership
2. limited liability partnership
3. limited liability company

Question 26

unlimited liability

Answer 26

General partners

Question 27

limited liability

Answer 27

Limited partners

Question 28

aims to protect innocent partners from the malpractice of wrong doings of other partners

Answer 28

limited liability partnership

Question 29

have features of both corporation and partnership

Answer 29

limited liability company

Question 30

An artificial being created by operation of law, having the right of succession and powers, attributes, and properties expressly authorized by law or incident to its existence

Answer 30

CORPORATION

Question 31

-Artificial well being. It means that it is an entity separate and distinct from its owners
-Is created by operation of law - Individuals cannot form a Corporation by themselves. The law must play a role in the formation of a corporation
-Has the right of succession - ownership rights can be passed to the other person through sale, donation, and any other mode of transfer
-The law Is the source of powers and attributes of a Corporation.

Answer 31

CORPORATION

Question 32

FREATURES OF A CORPORATION

Answer 32

1. separate legal existence
2. limited liability
3. transferable ownership rights
4. virtually unlimited life (not exceeding of 50 years)
5. corporation management
6. double taxation
7. Gov’t regulations
8. Dividends – income distributed to stockholders

Question 33

THREE TYPES OF DIVIDENDS

Answer 33

1. cash dividends
2. stock dividends
3. property dividends

Question 34

-A duly registered association of persons, with a common band of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required and accepting a fair share of the risk and benefits of the undertaking in accordance with universally accepted corporation principals.
-May be formed at least 15 persons

Answer 34

COOPERATIVES