ACC/561 Week 6 Final 30/30 Correct Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? Reduced legal liability for investors Most common form of organization Harder to transfer ownership Lower taxes The group of users of accounting information charged with achieving the goals of the business is its auditors. managers . investors. creditors. Which of the following financial statements is concerned with the company at a point in time? Balance sheet Retained Earnings statement Statement of cash flows Income statement An income statement reports the changes in assets, liabilities, and stockholders’ equity over a period of time. reports the assets, liabilities, and stockholders’ equity at a specific date. presents the revenues and expenses for a specific period of time. summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the relationship between short-term and long-term liabilities. net income for this year. projected net income for next year. relationship between current assets and current liabilities. A liquidity ratio measures the percentage of total financing provided by creditors. income or operating success of a company over a period of time. ability of a company to survive over a long period of time. short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash. The convention of consistency refers to consistent use of accounting principles among firms. among accounting periods. throughout the accounting periods. within industries. Horizontal analysis is also known as vertical analysis.
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- Fall '09
- Accounting, Net Income, Tex’s Manufacturing Company