ACC 556 Week 1 Assignment Help | Strayer University
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- 26 Jul 2020
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ACC 556 Week 1 Assignment Help | Strayer University
Practice Question 01
Sole proprietorships and partnerships generally
receive more favorable tax treatment than corporations.
Partnerships generally receive more favorable tax
treatment than sole proprietorships and corporations.
o
True
o
False
Practice Question 02
Creditorship is not a form of business organization.
Which is not one of the three forms of business
organization?
o
Sole proprietorship
o
Partnership
o
Corporation
o
Creditor ship
Practice Question 03
Correct!
Stockholders of corporation are not personally liable for debts of the
business.
Which is an advantage of corporations relative to
partnerships and sole proprietorships?
o
Harder to transfer ownership.
o
Increased difficulty of raising funds.
o
Most common form of organization.
o
Reduced legal liability for investors.
Practice Question 04
Correct! The
stock ownership of corporations enables easy transfer of ownership through
sale, gift, or trading of the stock.
Easy transfer of ownership is a characteristic of
which form of business organization?
o
Sole proprietorship.
o
Partnership.
o
Corporation.
o
All of the answer choices are correct.
Practice Question 05
Owners are personally liable for all debts of the
business in both sole proprietorships and partnerships.
In which forms of business organization are the
owners personally liable for all the debts of the business?
o
Sole proprietorships and corporations.
o
Sole proprietorships and partnerships.
o
Partnership and corporation.
o
All of the answer choices are correct.
Practice Question 06
Because sole
proprietorships have the ability to report business entity gains on their
personal income tax returns, both sole proprietorships and partnerships have a
tax advantage over the corporation.
o
The sole proprietorship form of business
organization
o
Combines the records of the business
with the personal records of the owner.
o
Is classified as a separate legal
entity.
o
Must have at least two owners in most
states.
o
Generally receives favourable tax
treatment relative to a corporation.
Practice Question 06
Because sole proprietorships have the ability to
report business entity gains on their personal income tax returns, both sole
proprietorships and partnerships have a tax advantage over the corporation.
o
The sole proprietorship form of business
organization
o
Combines the records of the business
with the personal records of the owner.
o
Is classified as a separate legal
entity.
o
Must have at least two owners in most
states.
o
Generally receives favorable tax
treatment relative to a corporation.
Practice Question 07
All three are
separate accounting entities. Only corporations are separate legal entities.
Which forms of business organization are considered
to be separate accounting entities?
o
Only corporations
o
Sole proprietorships, corporations, and
partnerships
o
Sole proprietorships and partnerships
only
o
Partnerships and corporations only
Practice Question 08
Since stockholders are not normally officers,
directors, or managers of the company, they are considered external users of
accounting information.
Internal users of accounting information include a
company's stockholders.
o
True
o
False
Practice Question 09
Many items
are important to internal users of accounting data. The requirement for valid
information is not limited to product price, product profitability, or
availability of cash.
To which of the following questions will internal
users want answers?
o
What selling price for our product will
maximize the company’s net income?
o
Which product line is most profitable?
o
Is cash sufficient to pay dividends to
stockholders?
o
All of the answer choices are correct.
Practice Question 10
Since the CFO is within the organization and has
access to information not released to the public, he or she is an internal user
of accounting data.
Which of the following is not an external user of
accounting data?
o
Customers
o
Chief Financial Officer
o
Labor unions
o
Economic planners
Practice Question 11
Regulatory authorities are considered external
users.
Which statement about users of accounting
information is incorrect?
o
Management is considered an internal
user.
o
Taxing authorities are considered
external users.
o
Present creditors are considered
external users.
o
Regulatory authorities are considered
internal users.
Practice Question 12
SOX was created to reduce unethical corporate
behavior and decrease the likelihood of future corporate scandals. It did not
address tax rates.
Which of the following did not result from the
Sarbanes-Oxley Act?
o
Top management must now certify the
accuracy of financial information.
o
Penalties for fraudulent activity
increased.
o
Auditors cannot provide non-audit
services to the same client.
o
Tax rates on corporations increased.
Practice Question 13
The accounting information system identifies,
records, and communicates the economic events of an organization to interested
users.
Which of the following is the most appropriate
definition of accounting information?
o
Electronic collection and organization
of vast amounts of financial information.
o
A means of collecting information.
o
The interconnected network of subsystems
necessary to operate a business.
o
The information system that identifies,
records, and communicates the economic events of an organization to interested
users.
Practice Question 14
Top management must certify the financial statements
for their company. This is intended to reduce unethical corporate behavior.
Which of the following is required as a result of
SOX?
o
Companies that go bankrupt must repay
shareholders for loss investments.
o
Public companies must present audited
financial statements.
o
Top management must certify the
financial statements for their company.
o
All shareholders now have an oversight
role of the company’s financial activities.
Practice Question 15
Since interest expense is the cost of obtaining
operating capital, it is properly classified as an expense under operating
activities.
Interest expense is classified under operating
activities on the statement of cash flows.
o
True
o
False
Practice Question 16
Since paying interest and receiving interest revenue
are usually part of the everyday operations of the company, they are operating
activities.
Paying interest expense and receiving interest
revenue are examples of
o
Operating activities.
o
Delivery activities.
o
Financing activities.
o
Investing activities.
Practice Question 17
The payment of dividends is an example of a
financing activity because it is a return on investment to the stockholders.
The payment of dividends is an example of a(n)
o
Operating activity.
o
Delivery activity.
o
Financing activity.
o
Investing activity.
Practice Question 18
Advertising is a type of operating activties.
Which of the following is not one of the three
primary business activities?
o
Investing
o
Advertising
o
Financing
o
Operating
Practice Question 19
Issuing shares of common stock is an a financing
activity.
Which of the following is an example of a financing
activity?
o
Buying delivery equipment
o
Selling goods on account
o
Buying inventory
o
Issuing shares of common stock
Practice Question 20
Assets are the resources owned by the business.
Resources owned by a business are referred to as
o
Revenues.
o
Stockholders’ equity.
o
Liabilities.
o
Assets.
Practice Question 21
Since paying salaries is usually part of the
everyday operations of the company, it is part of operating activities.
In terms of the principal types of business
activities, paying salaries expense is an example of
o
Investing activities.
o
Advertising activities.
o
Operating activities.
o
Financing activities.
Practice Question 22
Cost of goods sold is an expense of the period.
What kind of classification is cost of goods sold?
o
Asset
o
Expense
o
Liability
o
Revenue
Practice Question 23
Dividends paid are shown on the retained earnings
statement and the statement of cash flows because it relates to ownership
rather than operations.
Which of the following would not appear on the income
statement?
o
Dividends paid
o
Service revenue
o
Interest expense
o
Net income
Practice Question 24
Service revenue is reported on the income statement,
not on the retained earnings statement.
Which of the following would not appear on the
retained earnings statement?
o
Service revenue
o
Dividends
o
Net income
o
Beginning retained earnings balance
Practice Question 25
When a
company earns more revenue than the related costs, it will report net income
during a time period.
Net income will result during a time period when
o
Revenues exceed expenses.
o
Assets exceed liabilities.
o
Assets exceed revenues.
o
Expenses exceed revenues.
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