Which of the following would never be classified as a long-term investment?

	trading investments
	strategic investments consisting of only common shares
	bonds with a ten-year maturity
	investments in associated companies

Under the corporate form of business organization

	each shareholder is personally liable for a share the debts of the corporation (hence the term "shareholder").
	the income tax rate is lower when compared to a proprietorship
	the corporation's life is continuous.
	a shareholder's actions can bind the corporation even though he/she has not been appointed as an agent of the corporation.
	shareholders wishing to sell their shares must get the approval of other shareholders.

Normally, a company needs to stay with the same accounting principle(s) from year-to-year. However, a company can change to a new accounting principle if management can justify that the change will result in

	lower taxable income
	higher net income
	less likelihood of clerical (accounting) errors
	more relevant information for decision-making
	accounting policies are different from its competition's policies (in order to give it a competitive advantage)

When a company performs the service for which payment was received in advance, an adjusting entry is recorded that will

	increase cash and decrease deferred revenue
	increase cash and increase revenue
	increase revenue and decrease deferred revenue
	decrease revenue and increase deferred revenue