FUNDAMENTALS OF ABM 2

All are forms of Organization except for one

• Corporation

• Partnership

• Sole Proprietorship

• Manufacturing

An entity whose assets, liabilities, income and expenses are centered or owned by itself being a legally separate entity from its owners.

• Corporation

• Partnership

• Sole Proprietorship

• Manufacturing

Increases to owner’s equity by adding investments by the owner

• Initial Investments

• Withdrawals

• Income

• Additional Investments

The very first investment of the owner to the company

• Initial Investments

• Withdrawals

• Income

• Additional Investments

Which of the following pertains to business entity concept?

• Transactions of the business (as a separate entity) must be distinguished from the transactions of the owners.

• Transactions of the business (as a separate entity) must be merged with the transactions of the owners.

• Revenues are recorded when it is earned.

• Revenues are recorded when the corresponding cash has been received.

Which of the following are the major types of business organizations?

• Sole proprietorship

• Partnership

• Corporation

• All of the above

How many are considered owner(s) in a sole proprietorship?

• One

• More than one

• Two but not more than five

• Five and above

How are owner(s) in a sole proprietorship called?

• Sole proprietors

• Partners

• Shareholders/stockholders

• None of the above

Are those accounts that are presented under the assets portion of the SFP but are reductions to the company’s assets.

• Permanent Accounts

• Contra Asset Accounts

• Temporary Accounts

• Accounts Receivable

These are the accounts included in the Income Statement

• Permanent Accounts

• Contra Asset Accounts

• Temporary Accounts

• Accounts Receivable