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Unformatted text preview: e company's internal controls.
b Management must agree to the changes suggested by the external auditors.
c The company's internal auditors must examine the books and records of each department before the external auditors arrive.
d Loans may no longer be made to top company executives.
e External auditors must sign the financial statements before they are published. 4 Which of the following is true of a "Subchapter S Corporation"?
a The corporation is subject to double taxation.
b The company is not really a corporation so it is not a separate entity from the stockholders and does not file a tax return.
c The owners' personal assets are protected from customers and creditors.
d Tax on the business income of the company is paid only by the business.
e Owners of the equity of this business are called "debtors". Use the following information to answer question 5 for Rogers Company: If Taxable Income is:
5 The Tax is: But not over:
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- Fall '08