1. Differentiate the four forms of business organizations:Sole proprietorshipGeneral PartnershipLimited liability CompanyCorporations2. Explain and describe the type of information needed by each of these users:Revenueexpensesprofitabilitydebt3. Explain each accounting principlesAccrual principleConservatism principleConsistency principleCost principleEconomic entity principleFull disclosure principleGoing concern principleMatching principleMateriality principleMonetary unit principleReliability principleRevenue recognition principleTime period principle4. Define and explain each qualitative characteristics of useful financial information:VerifiabilityTimelinessUnderstandabilityComparability5. Differentiate the types of business according to its activity:Service businessMerchandising businessManufacturing business6. Name a 10 company according to the three major types of businesses7. Define the three major elements of accounting equation:assetsliabilitiesshareholders' equity

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 1MC: Which of the following is nor a common goal of an organization? A. operational efficiency B. being...

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1. Differentiate the four forms of business organizations:

Sole proprietorship
General Partnership
Limited liability Company
Corporations

2. Explain and describe the type of information needed by each of these users:

Revenue
expenses
profitability
debt

3. Explain each accounting principles

Accrual principle
Conservatism principle
Consistency principle
Cost principle
Economic entity principle
Full disclosure principle
Going concern principle
Matching principle
Materiality principle
Monetary unit principle
Reliability principle
Revenue recognition principle
Time period principle

4. Define and explain each qualitative characteristics of useful financial information:

Verifiability
Timeliness
Understandability
Comparability

5. Differentiate the types of business according to its activity:

Service business
Merchandising business
Manufacturing business

6. Name a 10 company according to the three major types of businesses

7. Define the three major elements of accounting equation:

assets
liabilities
shareholders' equity

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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. Differentiate the four forms of business organizations: Sole proprietorship General Partnership Limited liability Company Corporations