13 Interactive Quiz A

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Interactive Quiz A http://highered.mcgraw-hill.com/sites/0072996536/student_view0/chapter13/interactive_quiz_a.html[6/22/2010 6:53:48 PM] Interactive Quiz A (See related pages) Results Reporter Out of 30 questions, you answered 3 correctly with a final grade of 10% 3 correct (10%) 26 incorrect (87%) 1 unanswered (3%) Your Results: The correct answer for each question is indicated by a . 1 INCORRECT Which one of the following characteristics applies to both a sole proprietor and a general partnership but not a corporation? A) Continuous life B) A separate legal entity C) Unlimited liability D) Limited liability E) None of the above Feedback: Unlimited liability is a characteristic of both the sole proprietorship and the general partnership. C1 2 UNANSWERED Which of the following two statements are correct concerning the (1) degree of regulation of corporations by the government and (2) the taxability of the corporation's income at the federal level? A) (1) low government regulation and (2) no taxation of corporate income at the federal level. B) (1) low government regulation and (2) taxation of corporate income at the federal level C) (1) high government regulation and (2) no taxation of corporate income at the federal level D) (1) high government regulation and (2) taxation of corporate income at the federal level E) None of the above 3 CORRECT What is the accounting treatment for corporate organization costs? A) Corporate organization costs are debited to an expense account when they are incurred. B) Corporate organization costs are debited to an asset account and are never expensed to the income statement until the corporation goes out of existence. C) Corporate organization costs are debited to an asset account when they are incurred. A portion of these costs are written off to the income statement each accounting period. D) Both A and C are permissible. E) Both B and C are permissible. Feedback: Although the accounting treatment of corporate organization costs has varied over time, the current treatment is to expense these costs as they are incurred. C1 4 CORRECT All of the following are proper levels of involvement in the corporation in terms of ownership and management. Place these levels in their proper order as explained in the textbook: (1) the shareholders, (2) the president of the corporation, (3) the board of directors, (4) the rank and file employees of the corporation, and (5) the corporate vice-presidents and other corporate officers. A) 1, 3, 2, 5, 4 B) 2, 1, 3, 4, 5 C) 1, 2, 3, 4, 5 D) 3, 1, 2, 4, 5 E) 4, 5, 3, 2, 1 Feedback: The normal order is (1) the shareholders, (3) the board of directors, (2) the president of the corporation, (5) the corporate vice-presidents and other officers, and (4) the rank and file employees of the corporation, which is item A. C1 5 INCORRECT Which of the following statements concerning the Retained Earnings account is incorrect? A)
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13 Interactive Quiz A - Interactive Quiz A Home >...

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