As per the ________, the entity will remain in operation for the foreseeable future. A) economic entity concept B) monetary unit assumption C) going concern assumption D) cost principle ANSWER C
Date: September 2nd, 2020
Corporations pay their own income tax on corporate income. Stockholders pay personal income tax on the dividends received from corporations. This is an example of ________. A) double taxation B) continuous life C) no mutual agency D) a limited liability company ANSWER A
Date: September 2nd, 2020
Under the going concern principle, accountants must provide proof that the business will remain in operations long enough to use existing resources for their intended purpose. Indicate whether the statement is true or false ANSWER FALSE .Accountants base going concern on assumptions. Actual proof is not needed to make this determination.
Date: September 2nd, 2020
David has decided to open an auto-detailing business. He will pick up an automobile from the client, take it to his parents’ garage, detail it, and return it to the client If he does all of the work himself and takes no legal steps to form a special organization, which type of business organization, in […]
Date: September 2nd, 2020
Which of the following is a characteristic of a limited-liability company (LLC)? A) An LLC’s life is terminated at any member’s choice or death. B) Each member of an LLC is liable only for his or her own actions. C) An LLC must have more than five members. D) The income of members from an […]
Date: September 2nd, 2020
Caleb Brown has been the sole owner of a bicycle sales and repair shop for several years. Which of the following business types would limit Caleb’s personal liability exposure to the entity’s debts? A) partnership B) limited-liability company C) sole proprietorship D) limited-liability partnership ANSWER B
Date: September 2nd, 2020
Which of the following statements is true of a sole proprietorship? A) A sole proprietorship joins two or more individuals as co-owners. B) The sole proprietor is personally liable for the liabilities of the business. C) A sole proprietorship is taxed separately from the owner. D) A sole proprietorship has to pay business income taxes. […]
Date: September 2nd, 2020
The taxable income of a sole proprietorship is ________. A) combined with the personal income of the proprietor B) not combined with the proprietor’s personal income C) not taxable D) handled similarly to that of a corporation ANSWER A
Date: September 2nd, 2020
In a limited-liability company, the ________. A) members are personally liable to pay the entity’s debts B) business pays income tax on earnings C) members are liable for each other’s actions D) members pay income tax on their share of earnings ANSWER D
Date: September 2nd, 2020
Joshua Thomas Corporation manufactures and retails computer hardware. The president of the corporation bought a new car as a gift for his daughter and paid for it using cash from the business Since the corporation paid for the car, it was recorded in its books as an asset. Which of the following concepts or principles […]
Date: September 2nd, 2020
