1. Partnership income ratios can be expressed as a

proportion.

percentage.

fraction.

all of the answer choices are correct.

2. Dividends are declared out of

capital stock.

retained earnings.

treasury stock.

paid-in capital in excess of par value.

Question 9 Nabb & Fry Co. reports net income of $30,000. Interest allowances are Nabb $7,300 and Fry $5,500, salary allowances are Nabb $14,300 and Fry $10,800, and the remainder is shared equally. Show the distribution of income. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) Division of Net Income Nabb Fry Total Salary allowance $ $ Interest allowance Remaining excess/deficiency Total division of net income Question 14 Andrea has prepared the following list of statements about corporations. Identify each statement as true or false. 1. A corporation is an entity separate and distinct from its owners. 2. As a legal entity, a corporation has most of the rights and privileges a person. 3. Most of the largest U.S. corporations are privately held corporations. 4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued. 5. The net income of a corporation is not taxed as a separate entity. 6. Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. 7. The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders. 8. The board of directors of a corporation legally owns the corporation. 9. The chief accounting officer of a corporation is the controller. 10. Corporations are subject to fewer state and federal regulations than partnerships or proprietorships. Question 15 Andrea has prepared the following list of statements about corporations. dentify each statement as true or false. 1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership. 2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. 3. When a corporation is formed, organization costs are recorded as an asset. 4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation. 5. The number of issued shares is always greater than or equal to the number of authorized shares. 6. A journal entry is required for the authorization of capital stock. 7. Publicly held corporations usually issue stock directly to investors. 8. The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor. 9. The market price of common stock is usually the same as its par value. 10. Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock