Accounting 1.02

Which term refers to the owner having full responsibility for company debts and obligations?

• limited liability

• stock obligation

• unlimited liability

• taxation obligation

The accounting assumption that a business is expected to survive and operate indefinitely is called a:

• A

  business entity

• capital concern

• charter entitiy

• going concern

In which type of business ownership structure does each owner in the group risk losing his/her personal property even though responsibilities are shared?

• limited liability company

• sole proprietorship

• partnership

• corporation

Which type of business buys raw materials and transforms them into finished products?

• entrepreneurial

• manufacturing

• merchandising

• service

In which type of business are operations and production usually unaffected when ownership is transferred?

• Coporation

• Partnership

• Sole Proprietorship

• Limited Liability Company

Which term refers to the accounting assumption that a business exists independently of its owner’s personal property and requires separate financial record keeping of the owner’s finances and those of the business?

• business entity

• capital concern

• charter property

• going concern

The amount of money earned above the amount of expenses incurred to keep a business in operation is called:

• net loss

• net profit

• equity capital

• going concern

In which business ownership structure are business debts the total responsibility of a business so that personal property of the owner is protected from loss?

• corporation

• partnership

• sole proprietorship

• LLC