Acc/561 Exam

|

| Multiple Choice Question 49 | | | | Your answer is correct. | | |
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? | Reduced legal liability for investors. | | Harder to transfer ownership. | | Lower taxes. | | Most common form of organization. | | | | | Multiple Choice Question 64 | |

| | Your answer is correct. | | |
The group of users of accounting information charged with achieving the goals of the business is its

| auditors. |

| managers. |

| investors. |

| creditors. | | Multiple Choice Question 110 | | | | Your answer is correct. | | |
Which of the following financial statements is concerned with the company at a point in time? | Retained Earnings statement. | | Income statement. | | Statement of cash flows. | | Balance sheet. | | | | Multiple Choice Question 112 | |

| | Your answer is correct. | | |
An income statement

| reports the assets, liabilities, and stockholders’ equity at a specific date. |

| presents the revenues and expenses for a specific period of time. |

| summarizes the changes in retained earnings for a specific period of time. |

| reports the changes in assets, liabilities, and stockholders’ equity over a period of time. | Multiple Choice Question 112 | |

| | Your answer is correct. | | |
An income statement

| reports the assets, liabilities, and stockholders’ equity at a specific date. |

| presents the revenues and expenses for a specific period of time. |

| summarizes the changes in retained earnings for a specific period of time. |

| reports the changes in assets, liabilities, and stockholders’ equity over a period of time. | Multiple Choice Question 124 | |

| | Your answer is correct. | | |
A liquidity ratio measures the

| short-term ability of a