Which of the letter choices are the solutions to the questions?

Accounting profits and cash flows are:

Select one:

a. Generally the same since they reflect current laws and accounting standards.

b. Generally the same since accounting profits reflect when the cash flows are received.

c. Generally not the same since GAAP allows for revenue recognition separate from the receipt of cash flows.

d. Generally not the same because cash inflows occur before revenue recognition.

e. Both c and d.

Which one of the following statements is correct?

Select one:

a. Both partnerships and corporations incur double taxation.

b. Both sole proprietorships and partnerships are taxed in a similar fashion.

c. Partnerships are the most complicated type of business to form.

d. Both partnerships and corporations have limited liability for general partners and shareholders.

e. All types of business formations have limited lives.

Since the implementation of Sarbanes-Oxley, the cost of going public in the United States has:

Select one:

a. Increased.

b. Decreased.

c. Remained about the same.

d. Been erratic, but over time has decreased.

e. It is impossible to tell since Sarbanes-Oxley compliance does not involve direct cost to the firm.

The owners of a limited liability company prefer:

Select one:

a. Being taxed like a corporation.

b. Having liability exposure similar to that of a sole proprietor.

c. Being taxed personally on all business income.

d. Having liability exposure similar to that of a general partner.

e. Being taxed like a corporation with liability like a partnership.