Midterm

Midterm - Which of the following is not an advantage of a...

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Which of the following is not an advantage of a partnership? A. Each partner has limited liability. B. Partners' income taxes may be less than the income taxes would be on other forms of organization. C. It is possible to bring together more capital than in a sole proprietorship. D. It is possible to bring together more managerial skills than in a sole proprietorship. Which features of a limited liability company provide it advantages over a partnership? A. limited life, nontaxable (flow-through) entity B. limited liability, taxed as a separate entity C. limited liability, nontaxable (flow-through) entity D. unlimited liability, taxed as a separate entity When a new partner is admitted to a partnership by a contribution of assets to the partnership: A. only the owner's equity is affected B. only the total assets are affected C. both the total assets and the total owner's equity are increased D. neither the total assets nor the total owner's equity of the business is affected Columbo, Dexter, and Flamingo share income and losses in the ratio of 1:2:2 according to their partnership agreement. The partnership income is $80,000. How much income is allocated to Dexter's capital account? A. $16,000 B. $40,000 C. $26,666 D. $32,000 If there is a loss on the sale of noncash assets when a partnership goes out of business, the loss should be divided among the partners: A. according to their income-sharing ratio B. according to their current capital balances C. equally D. according to their original capital investments A partnership liquidation occurs when A. a new partner is admitted B. a partner dies C. the ownership interest of one partner is sold to a new partner D. the assets are sold, liabilities paid, and business
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operations terminated The amount printed on a stock certificate is known as A. disco unt B. par value C. state d value D. premi um Assume that a corporation has outstanding 5,000 shares of $6 cumulative preferred stock of $100 par and no dividends have been paid for the preceding four years. What is the amount of preferred dividends that must be declared in the current year before a dividend can be declared on common stock? A. $120, 000 B. $30,0 00 C. $150, 000 D. $90,0 00 The excess of the proceeds from selling treasury stock over its cost should be credited to: A. Premium on Capital Stock B. Gain from Sale of Treasury Stock C. Retained Earnings D. Paid-In Capital from Sale of Treasury Stock The entry to record the issuance of common stock at a price above par would include a credit to: A. Retained Earnings B. Treasury Stock C. Paid-ln Capital in Excess of Par--Common Stock D. Donated Capital
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Which of the following is the appropriate general journal entry to record the declaration of a cash dividends? A.
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Midterm - Which of the following is not an advantage of a...

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