on, select the one best answer and mark Name: -51 9NAL Partl (40 Points) For each multiple che select the one test on your Scantron form. 01. A local retail shop has been operating as a sole proprietorship operating as a sole proprietorship. The business is growi wants to incorporate. Which of the following is not a reason for of the following is not a reason for this owner to incor A) Ability to raise capital for expansion B) Desire to limit the owner's personal liability. C) The prestige of operating as a corporation. D) The ease in transferring shares of the corporation's stock. External users want answers to all of the following questions except A) Is the company earning satisfactory income? Will the company be able to pay its debts as they come due? Will the company be able to afford employee pay raises this year D) How does the company compare in profitability with competitors 03. The primary purpose of the statement of cash flows is to report A) summarizes the changes in retained earnings for a specific period of tim B) reports the changes in assets, liabilities, and stockholders' equity over a C) information about cash receipts and cash payments of a company. D) the change in revenues and expenses resulting from daily operations f 04. In a study session, a classmate makes this statement "Dividends are liste statement." What is your best response to this statement? A) I've been struggling with that concept and I feel that dividends show assets. B) You are right. Revenues and expenses are shown on the income st generating revenues and that makes them an expense. Why else w C) Dividends represent a portion of corporate profits that are paid to retained earnings statement. D) Dividends are deducted from retained earnings on the balance s Finney Company began the year by issuing $80,000 of common st revenues of $740,000, expenses of $760,000, and paid dividends income or loss for the year? A) $60,000 income. B) $60,000 loss. C) $20,000 loss. D) $40,000 income