Midterm Exam
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|1. (TCO A) Which of the following statements is CORRECT? (Points : 10) |
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| [pic] One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. |
| [pic] It is generally easier to transfer one’s ownership interest in a partnership than in a corporation. |
| [pic] One of the advantages of the corporate form of organization is that it avoids double taxation. |
| [pic] One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one |
|person, one vote.” |
| [pic] Corporations of all types are subject to the corporate income tax. |
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|2. (TCO G) Which of the following statements is CORRECT? (Points : 10) |
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| [pic] In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash.
|1. (TCO A) Which of the following statements is CORRECT? (Points : 10) |
| |
| [pic] One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. |
| [pic] It is generally easier to transfer one’s ownership interest in a partnership than in a corporation. |
| [pic] One of the advantages of the corporate form of organization is that it avoids double taxation. |
| [pic] One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one |
|person, one vote.” |
| [pic] Corporations of all types are subject to the corporate income tax. |
| |
| |
| |
|2. (TCO G) Which of the following statements is CORRECT? (Points : 10) |
| |
| [pic] In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash.