Question : 91. Which of the following statements true about a sole proprietorship? A. The : 1228419

91. Which of the following statements is true about a sole proprietorship? 
A. The owner and the business are separate legal entities but not separate accounting entities.
B. The owner and the business are separate accounting entities but not separate legal entities.
C. The owner and the business are separate legal entities and separate accounting entities.
D. Most large businesses in this country are organized as sole proprietorships.

92. For a business organized as a general partnership, which statement is true? 
A. The owners and the business are separate legal entities.
B. Each partner is potentially responsible for the debts of the business.
C. Formation of a partnership requires getting a charter from the state of incorporation.
D. A partnership is not considered to be a separate accounting entity.

93. Which of the following would not be reported on a statement of retained earnings? 
A. Dividend payments
B. Net income
C. Beginning retained earnings
D. Ending retained earnings

94. Which of the following statements is correct? 
A. The statement of retained earnings always reports the same amount of dividend payments as does the statement of cash flows.
B. The statement of cash flows has a relationship with the balance sheet.
C. Dividends paid are reported on the statement of cash flows as an operating cash flow and on the income statement as a financing cash flow.
D. Net income is reported on the income statement but not on the statement of retained earnings.

95. Which of the following is not provided within the notes that accompany the financial statements? 
A. A description of the accounting rules applied.
B. A description of the terms of a lease agreement.
C. A description pertaining to a particular line on the financial statements.
D. A description of net income for each of the prior three years.

96. Which of the following transactions affects both retained earnings and net income? 
A. The payment of a cash dividend.
B. The recording of revenue for services provided.
C. The issue of stock in exchange for cash.
D. The borrowing of money from a bank.

97. Which of the following transactions affects both the income statement and the statement of cash flows? 
A. Selling stock in exchange for cash.
B. Declaring and paying a cash dividend.
C. Selling a product to a customer which creates an account receivable.
D. Paying employee wages as they are earned.

98. Which of the following would not be found within the investing section of the statement of cash flows? 
A. Cash paid to purchase a manufacturing building.
B. Cash received from the sale of stock to stockholders.
C. Cash received from the sale of manufacturing equipment.
D. Cash paid to purchase land.

99. Which of the following is primarily responsible for the information provided in the financial statements? 
A. Chief Executive Officer
B. External Auditors
C. Board of Directors
D. Internal Accounting Staff

100. Which of the following doesn’t represent a professional accounting certification? 
A. Certified Management Accountant
B. Certified Public Accountant
C. Certified Internal Auditor
D. Certified Tax Accountant