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
Johnson Company purchased land for $30,000. The president of Johnson Company believes that the land is actually worth $35,000. The land can be recorded at $35,000. Indicate whether the statement is true or false ANSWER FALSE .The cost principle states that acquired assets are recorded at their actual cost.
Date: September 2nd, 2020
The ultimate control of the corporation rests with the ________. A) board of directors B) stockholders C) chairperson D) chief operating officer ANSWER B
Date: September 2nd, 2020
Certified Public Accountants are licensed professional accountants who serve the general public. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
The formation of a partnership firm requires a minimum of ________. A) four partners B) three partners C) one partner D) two partners ANSWER D
Date: September 2nd, 2020
Financial analysts perform reviews of companies to ensure compliance to rules and regulations. Indicate whether the statement is true or false ANSWER FALSE .Auditors perform reviews of companies to ensure compliance to rules and regulations.
Date: September 2nd, 2020
