Form of Business Organization by xia11902

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									                                  Exercise 1: The Language of Business, Part I

                                                       Terms
    a        government accountants
    b        internal auditing
    c        Canada Customs and Revenue Agency
    d        accounting
    e        record-keeping
    f        profit
    g        public accountants
    h        CGA
    I        GAAP
    j        shareholders

  Type
letters in
                                                          Descriptors
   this
 column.
             A position created when a firm employs an accountant to examine that firm's own record-keeping
             processes and appraise mnagement's ability to follow proper accounting procedure.
             Revenue minus expenses.

             The federal agency responsible to collect taxes and enforce tax law.

             Accountants who provide services to a variety of different clients.

             Accountants who are employed by various levels of government.

             Accounting rules created to provide clarity in ambiguous situations, and therefore create
             consistency in accounting practices.
Instructions:

Type the letter associated with
the correct term beside the
descriptors below.



Comments:




Mark:
             Exercise 2: Forms of Business Organization, Part I

                      Form of Business Organization
    s
    p
    c

  Type
letters in
   this
 column.
                         Exercise 2: Forms of Business Organization, Part I

                                     Form of Business Organization
sole-proprietorship
partnership
corporation



                                                     Situation


Ownership of the company is divided amongst 100,000 shares.

The owner, Sally Smith, is personally liable for the debts of the business.

The business has two owners, yet neither are personally liable for the debts of the business.

The firm is a legal entity in the eyes of the law.

The firm has two owners, but does not pay taxes in its own name.

The owner, Jerry Brown, reports the business income on his personal tax return, and can therefore claim any
business loss in order to reduce his taxable income.
Instructions:

Type the letter associated with
the correct form of business
organization beside the
situations described.


Comments:




Mark:
                                  Exercise 3: The Language of Business, Part II

                                                       Terms
    a        audit
    b        cost accounting
    c        ethics
    d        general accounting
    e        record-keeping
    f        budgeting
    g        tax accounting
    h        CGA
    I        GAAP
    j        CFO

  Type
letters in
                                                          Descriptors
   this
 column.
             An area in accounting concerned with financial planning in an effort to reduce payment of income
             taxes.
             An area of managerial accounting concerned with controlling and reducing operating costs.

             Higher principles and morals that would help determine whether an action is right or wrong.

             An examination of a firm's accounting system and records that adds credibility to the firm's financial
             statements.
             The task of recording original transaction data, processing this data, and preparing reports and
             financial statements.
             Developing formal plans for a firm's future activities.
Instructions:

Type the letter associated with
the correct term beside the
descriptors below.



Comments:




Mark:
             Exercise 4: Accounting Responsibilities

                       Area of Accounting
    f
    m
    t

  Type
letters in
   this
 column.
                                 Exercise 4: Accounting Responsibilities

                                           Area of Accounting
financial accounting
managerial accounting
tax accounting



                                               Accounting Responsibility


Auditing financial statements.

Planning transactions so as to minimize taxes paid.

Cost accounting.

Preparing financial statements.

Investigating alleged violations of tax law.

Reviewing financial reports for compliance with security commissions' requirements.

Budgeting.
Instructions:

Type the letter associated with
the correct form of accounting
beside the situations described
below.


Comments:




Mark:
                             Exercise 5: Forms of Business Organization, Part II

                                                      Form of Business Organization
          Characteristics
                                    sole-proprietorship        partnership            corporation
limited liability

unlimited liability

owners are shareholders

owners are partners

taxed as a separate legal entity
Instructions:

Complete the chart by typing an
"x" in the appropriate cells.



Comments:




Mark:

								
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