Question :
11) Financial accounting provides budgeting information to a company’s managers.
12) : 1230027
11) Financial accounting provides budgeting information to a company’s managers.
12) A partnership is formed under state law.
13) Accounting:
A) measures business activities.
B) processes data into reports and communicates the data to decision makers.
C) is often called the language of business.
D) is all of the above.
14) The two types of accounting are:
A) profit and nonprofit.
B) financial and managerial.
C) internal and external.
D) bookkeeping and decision-oriented.
15) The type of accounting that makes projections to determine if a company should build a new store is:
A) financial accounting.
B) business accounting.
C) managerial accounting.
D) projection accounting.
16) Decision makers who use accounting include:
A) the SEC
B) investors.
C) managers.
D) all of the above.
17) The ________ is elected by the stockholders and is responsible for setting policy and appointing officers.
A) board of directors
B) chief executive officer (CEO)
C) chief financial officer (CFO)
D) advisory council
18) Which type of business organization transacts the most business and is the largest in terms of assets, income, and number of employees?
A) Proprietorship.
B) Partnership.
C) Limited-liability company.
D) Corporation.
19) In which form of business ownership are the owners of a business legally distinct from the business?
A) Corporation.
B) Partnership.
C) Proprietorship.
D) All of the above.
20) An entity that must pay its own income taxes is:
A) proprietorship.
B) partnership.
C) limited-liability company.
D) corporation.
21) Which of the following is a true statement about the characteristics of partnerships?
A) In a limited-liability partnership, a wayward partner can create a large liability for the other partners.
B) General partners have mutual agency and limited liability.
C) Income and loss of the partnership “flows through” to the partners.
D) The partnership agreement must be in writing.
22) Owners of an LLC are called:
A) partners.
B) sole proprietors.
C) members.
D) stockholders.
23) Advantages of a corporation include:
A) a single owner.
B) the double taxation of distributed profits.
C) limited liability of the stockholders.
D) mutual agency.
24) Shareholders of a corporation:
A) receive one vote for each share of stock they own.
B) have unlimited liability.
C) have mutual agency.
D) receive dividends from the corporation without having to pay tax on the distribution.
25) An entity that is organized according to state law and in which ownership units are called stock is a:
A) proprietorship.
B) corporation.
C) partnership.
D) limited liability company.
26) An important fact to consider when determining how to organize a business is that:
A) members of an LLC have unlimited liability and are taxed like members of a partnership.
B) for accounting purposes, a proprietorship is a distinct entity.
C) the records of a partnership can include the partner’s personal finances.
D) the proprietor and the proprietorship are separate legal entities.
