Question Details

A basic assumption of accounting that requires activities 


1.		Bumi Corporation purchased an investment in the ordinary shares of another corporation for Rp250,000,000 in 2009. The shares are actively traded on the Indonesian Stock Exchange. The fair value of the investment at December 31, 2011 is Rp266,000,000. If the company follows the fair value principle, the investment will be reported in the 2011 financial statement at
a.	Rp250,000,000 on the statement of financial position.
b.	Rp266,000,000 on the statement of financial position.
c.	Rp250,000,000 on the retained earnings statement.
d.	Rp265,000,000 on the retained earnings statement.


2.		A small neighborhood barber shop that is operated by its owner would likely be organized as a
a.	joint venture.
b.	partnership.
c.	corporation.
d.	proprietorship.


	3.	John and Sam met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be a
a.	joint venture.
b.	partnership.
c.	corporation.
d.	proprietorship.


	4.	Which of the following is true regarding the corporate form of business organization?
a.	Corporations are the most prevalent form of business organization.
b.	Corporate businesses are generally smaller in size than partnerships and proprietor-ships.
c.	The revenues of corporations are greater than the combined revenues of partnerships and proprietorships.
d.	Corporations are separate legal entities organized exclusively under federal law.


	5.	A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the
a.	stand alone concept.
b.	monetary unit assumption.
c.	corporate form of ownership.
d.	economic entity assumption.





Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help