writers choice

Learning Objective 1-5 1) In an LLC, the business-not the owners-are responsible for the corporation's debts. 2) Corporations are subject to stricter regulation than other forms of businesses, so it is more difficult for corporations to raise large amounts of investment capital. 3) The most an investor in a corporation can lose-in the event the business fails-is limited to the amount the party has invested. 4) Stockholders of a corporation each have “mutual agency,” meaning they are authorized to carry out transactions on behalf of the corporation. 5) The first step in incorporation is to: A) have the board of […]

11) Which of the following financial statements reports expenses in decreasing order of their amount, with the largest expense first? A) Statement of cash flows B) Income statement C) Statement of retained earnings D) Balance sheet 12) Which of the following financial statements uses net income or net loss taken directly from the income statement? A) Statement of retained earnings B) Statement of cash flow C) Balance sheet D) Statement of dividends paid 13) Which of the following financial statements reports that total assets equals total liabilities plus total stockholders' equity? A) Statement of retained earnings B) Statement of cash […]

11) Which of the following financial statements reports expenses in decreasing order of their amount, with the largest expense first? A) Statement of cash flows B) Income statement C) Statement of retained earnings D) Balance sheet 12) Which of the following financial statements uses net income or net loss taken directly from the income statement? A) Statement of retained earnings B) Statement of cash flow C) Balance sheet D) Statement of dividends paid 13) Which of the following financial statements reports that total assets equals total liabilities plus total stockholders' equity? A) Statement of retained earnings B) Statement of cash […]

11) Martin Supply Co. paid $350 cash to a materials supplier that it owed from the previous month.  What is the effect of the cash payment on the accounts of the company? A) Materials account increases; Retained earnings account decreases. B) Cash account decreases; Accounts payable increases. C) Accounts payable increases; Retained earnings account decreases. D) Cash account decreases; Accounts payable decreases. 12) Martin Supply Co. paid $350 cash to a materials supplier that it owed from the previous month.  Which of the following accounts decreases? A) Accounts receivable B) Accounts payable C) Retained earnings D) Common stock 13) Martin […]