11) The owner(s) of a business will most likely face "double taxation" if their business is organized as a(n):
A) corporation.
B) LLC.
C) partnership.
D) proprietorship.
12) The ability to raise large amounts of capital is a key characteristic of a:
A) partnership.
B) not-for-profit.
C) corporation.
D) proprietorship.
13) The separation between the owners and the managers of a business is most distinct in a(n):
A) corporation.
B) LLP.
C) partnership.
D) proprietorship.
Learning Objective 1-6
1) Many liabilities have the word "receivable" in their titles.
2) The faithful representation principle requires that information is complete, neutral and free from material error.
3) Which of the following concepts (or principles) would dictate that a person with three different businesses keep three different checking accounts?
A) Cost principle
B) Faithful representation principle
C) Going-concern concept
D) Entity concept
4) Which of the following concepts (or principles) would be most likely to require that data be complete, neutral, and free from error?
A) Cost principle
B) Faithful representation principle
C) Entity concept
D) Going-concern concept
5) Which of the following concepts (or principles) addresses the ability of partners to commit other partners and the business to a contract?
A) Going-concern concept
B) Cost principle
C) Mutual agency
D) Objectivity principle
6) Counting the actual physical inventory of a company and comparing it to accounting records would be an example of the:
A) faithful representation principle.
B) entity concept.
C) going-concern concept.
D) stable monetary unit concept.
7) An American business records transactions using the U.S. dollar and disregards fluctuation in the buying power of the dollar over time. This represents which of the following concepts or principles?
A) The entity concept
B) The going-concern concept.
C) The faithful representation
D) The stable monetary unit principle