Quiz No. 1

It involves the most complex activities and actually produces the goods that it sells to customers.

• Service concern

• Trading concern

• Manufacturing concern

• Non-profit enterprise

The following are disadvantages of sole proprietorship, except:

• Proprietor does not receive the benefit of second opinion on decisions made.

• Proprietor bears the risks and losses which may be incurred in the business.

• Proprietor has limited personal liability for the debts incurred by the business.

• Proprietor has limited ability to raise capital once volume of business increases.

The following are advantages of partnership, except:

• Burden of management is shared among partners.

• More ideas are exchanged and brainstormed which results in better decision-making

• Can raise more capital than sole proprietorship

• Depends on the capability of each partner to invest resources into the business.

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

• Sole proprietorship

• Partnership

• Corporation

• Cooperative

These are the corporators of a stock corporation.

• Stockholder

• Member

• Investor

• Creditor

These are the functions of a business directly related to providing its goods and/or services to the market.

• Financing activities

• Investing Activities

• Operating Activities

• Marketing Activities

It is the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of the information.

• Accounting

• Financial Reporting

• Financing

• Investing

This concept states that a business is considered distinct and separate from the owner(s) of the business.

• Entity Concept

• Periodicity Concept

• Accrual Basis

• Going Concern

This concept states that the operating life of an enterprise may be conveniently divided into time periods of equal length called accounting periods.

• Entity Concept

• Periodicity Concept

• Accrual Basis

• Going Concern

This focuses on the preparation of general-purpose financial statements with the aim of meeting most of the needs of the external users.

• Bookkeeping

• Financial Accounting

• Management Accounting

• Auditing