1.Which of the following statements concerning the accrual method of accounting is accurate?

A.individuals and sole proprietorships must use the accrual method

B.a qualified personal service corporation must use the accrual method

C.the purpose of the accrual method is to match income and expenses in the correct year

D.under the accrual method, income is reported in the tax period during which it is received

2.Margie opened a used bookstore and is both the 100 percent owner and the store's manager. Which type of business entity does Margie own if she is personally liable for all the store's debts?

A.Sole proprietorship

B.Limited partnership

C.Corporation

D.Limited liability company

E.General partnership

3.Will and Bill both enjoy sunshine, water, and surfboards. Thus, the two friends decided to build a business together renting surfboards, paddle boats, and inflatable devices in California. Will and Bill will equally share in the decision making and in the business profits or losses. Which type of business did they create if they both have full personal liability for the firm's debts?

A. Sole proprietorship

B.Limited partnership

C.Corporation

D.Joint stock company

E.General partnership

4.Which one of the following forms of business organization offers liability protection to some of its owners but not to all of its owners?

A.Sole proprietorship

B.General partnership

C.Limited partnership

D.Limited liability company

E.Corporation