question. 1. Which of the following is not an advantage of the corporate form of organization? A) No personal liability B) Easy to transfer ownership C) Favorable tax treatment D) Easy to raise funds 2. The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n) A) account payable. B) account receivable. C) revenue. D) expense. 3. Which of the following is an asset? A) Mortgage payable B) Inventory C) Common stock D) Retained earnings major categories Which of the following financial statements is operating, investing, and A) The income statement. B) The balance sheet. C) The retained earnings statement. D) The statement of cash flows. 4. divided into financing activities? 5. Which financial statement is prepared first? A) Balance sheet B) Income statement C) Retained earnings statement D) Statement of cash flows