Question :
81. Which of the following a characteristic of an S : 1369847
81. Which of the following is a characteristic of an S Corporation?
A)No taxation of income at the corporate level
B)Responsibility of owners for the firm’s debt
C)Unlimited liability
D)Mutual agency
82. Which of the following statements is true?
A)Before the advent of a money economy, the double-entry accounting system was not feasible.
B)Accounting systems developed in the 18th century because, by then, most people were literate.
C)Double-entry accounting systems have existed for at least 2,000 years.
D)The double-entry accounting system came about as a result of the Great Depression.
83. Which of the following is true about the relationships between the financial statements?
A)The ending balances of the retained earnings found in the Statement of Changes in Stockholders’ Equity are found on the Balance Sheet.
B)The net income reported on the Income Statement is also found on the balance sheet.
C)The cash inflows identified on the Statement of Cash Flows are reported on the Income Statement.
D)The cash reported on the Income Statement is reported on the Statement of Cash Flows
84. Which of the following is NOT true about the relationship between the financial
statements?
A)The net income of the firm is added to owners’ equity
B)The cash on the balance sheet is found on the cash flow statement
C)The net income of the firm is reported on the Income Statement and the Statement of Changes in Shareholders’ Equity
D)The cash generated by operations on the Statement of Cash Flows is reported as an increase in Retained Earnings on the Statement of Changes in Shareholders’ Equity
85.The Debt to Equity Ratio is measure with which of the following?
A)Total Liabilities / Total Assets
B)Long-term Liabilities / Total Stockholders’ Equity
C)Total Stockholders’ Equity / Total Liabilities
D)Total Liabilities / Total Stockholders’ Equity
86.If the Debt to Equity Ratio is greater than 1 it means.
A)The company is using debt more than owners’ equity to finance its assets
B)The company has less debt than equity
C)The company has more debt than assets
D)The company is using more of its assets to finance its debt
87. The cash held by a company at the end of the year is found on which of the following two statements?
A)Balance Sheet and Income Statement
B)Balance Sheet and Statement of Cash Flows
C)Income Statement and Statement of Cash Flows
D)Statement of Stockholders’ Equity and Cash Flows Statement
88. Net income is found on which of the following two statements?
A)Balance Sheet and Income Statement
B)Statement of Changes in Stockholders’ Equity and Income Statement
C)Statement of Changes in Stockholders’ Equity and Balance Sheet
D)Statement of Cash Flows and Balance Sheet
89. The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following?
A)The financial statements are correct as reported
B)The financial statements are fairly presented
C)The financial statements are free from fraud
D)The financial statements are presented fairly in accordance with GAAP.
90. Which of the following is the ratio for calculating the current ratio?
A)Current Assets / Current Liabilities
B)Current Assets / Total Liabilities
C)Current Liabilities / Current Assets
D)Current Assets / Total Sales
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