GAAP refer to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to ________. A) Globally Accepted and Accurate Policies B) Global Accommodation Accounting Principles C) Generally Accredited Accounting Policies D) Generally Accepted Accounting Principles ANSWER D
Date: September 2nd, 2020
As per the economic entity assumption, an organization and its owners should be seen as the same entity. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
In a sole proprietorship, the owner is personally liable for the debts of the business. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The most that the owner of a sole proprietorship can lose, as a result of business debts or lawsuits, is the amount he/she has invested in the business. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Members of a limited-liability company (LLC) are not personally liable for the debts of the business. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
In a limited-liability company (LLC), the members are personally liable for the debts of the business. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
A business can be organized as a sole proprietorship, partnership, corporation, or limited-liability company (LLC). Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Accounting is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following is an external user of a business’s financial information? A) customers B) cost accountant C) company manager D) the board of directors ANSWER A
Date: September 2nd, 2020
Accounting is referred to as the language of business because it is the method of communicating business information to decision makers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
