Question 13.

Answer the following multiple choices with the most correct answer

Which of the following statements best describes a proprietorship? O Can be single or multiple owners. O Taxed separately. Most expensive to establish. O Owner is responsible for debt of the company. Jennifer is a university student looking to earn some cash for tuition over the summer months (April-August). She has decided to start a lawn care business, what business structure would best suit her needs? O private corporation O public corporation O general partnership O sole proprietorship Which of the following is an example of an operating activity? O Paying dividends. O Sale of investment in other companies' shares. O Purchase of property, plant, and equipment. Payment of interest expense. Which of the following expenses has no effect on the cash flow of a firm? a O salaries expense O interest expense depreciation expense O cost of goods sold If the company had a loan outstanding, which of the following would be used to record accrued interest at the end of the accounting period? O increase Interest Expense, decrease Cash O increase Interest Expense, increase Interest Payable O decrease Interest Payable, increase Interest Income O decrease Interest Payable, decrease Cash Shareholders of a publicly traded company want to assess the return on their investment The shareholders should use the following ratio to help specifically assess this: O Gross profit margin. O ROE O ROA. O Profit margin. The sale of merchandise to a customer partly for cash and partly on account would require which of the following? O increase in Accounts receivable, increase in Cash, increase in Sales Revenue O increase in Cash, decrease in Accounts Payable, increase in Sales Revenue O increase in Cash, increase in Sales Revenue O decrease in Accounts Payable, increase in Accounts Receivable, increase in Sales Revenue