Multiple Choice questions 1 Which of the following statements is false concerning forms of business organization a A corporation has tax advantages over the other forms of business organization b It is easier for a corporation to raise large sums of money than it is for a sole proprietorship or par...

1 a A corporation has tax advantages over the other fo ...

Multiple Choice questions 1. Which of the following statements is false concerning forms of business organization? a.

Question:

Multiple Choice questions
1. Which of the following statements is false concerning forms of business organization?
a. A has tax advantages over the other forms of business organization.
b. It is easier for a to raise large sums of money than it is for a sole proprietorship or partnership.
c. A sole proprietorship is an easy type of business to form.
d. Owners of sole proprietorships and partnerships have personal liability for the debts of the business while owners of corporations have limited legal liability.
2. Which of the following statements regarding business activities is true?
a. Operating activities involve buying the assets that enable a company to generate revenue.
b. Financing activities include obtaining the funds necessary to begin and operate a business.
c. Investing activities center around earning interest on a company’s investments.
d. Companies spend a relatively small amount of time on operating activities.
3. At December 31, Pitt Inc. has assets of $10,500 and liabilities of $5,800. What is the stock holders’ equity for Pitt at December 31?
a. $4,700
b. $5,800
c. $15,200
d. $16,300
4. Which of the following is not one of the four basic Income statement
b. Auditor’s report
c. Statement of cash flows
5. What type of questions do the help to answer?
a. Is the company better off at the end of the year than at the beginning of the year?
b. What resources does the company have?
c. What did a company use its cash for during the year?
d. All of the above.
6. Which of the following is not shown in the heading of a financial statement?
a. The title of the financial statement
b. The name of the company
c. The time period covered by the financial statement
d. The name of the auditor
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...