Which of the following statements is CORRECT?
A. In a typical partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the business.
B. In a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy.
C. A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.
D. Partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.
E. A major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself.
Answer: D
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Your uncle has just started a business and comes to you with a question. "I'm confused. I have a memo included with my bank statement indicating a $45 service charge for printing new checks. Since you're an accounting major, maybe you can explain to me
why they call it a ‘debit memorandum,' even though they are deducting this amount from my account. When I took Accounting in school, I could have sworn that a decrease in the Cash account would be a credit and not a debit. REQUIRED: In a short paragraph, explain this issue to your uncle.
Use this information to answer the following question. The following totals for the month of September were taken from the payroll register of Meadors Company: Salaries expense $24,000 Social security and Medicare taxes withheld 1,100 Income taxes withheld 5,000 Medical insurance deductions 500 Life insurance deductions 400 Salaries subject to federal and state unemployment taxes of 6.2 percent
8,000 The entry to record the accrual of federal unemployment tax (assume FUTA tax of 0.8 percent) would include a A) credit to Federal Unemployment Tax Payable for $64. B) debit to Federal Unemployment Tax Payable for $64. C) debit to FUTA Tax Expense for $64. D) credit to Payroll Taxes and Benefits Expense for $64.
Karyn's team has already uncovered the lab's needs during the consultative questioning stage of the presentation. Which of the following is most likely true?
A) The team should practice debating features and benefits before the negotiation. B) The team should continue to gather as much information on the lab and the lab's buying team as possible before the negotiation. C) The team has already missed their best window of opportunity for negotiations. D) The team should be more aggressive about offering discounts to achieve a fast close. E) The team is more prepared than they need to be for the negotiation process.
Groundworks Company budgeted the following credit sales during the current year: September, $90,000; October, $123,000; November, $105,000; December, $111,000. Experience has shown that cash from credit sales is received as follows: 10% in the month of sale, 50% in the first month after sale, 35% in the second month after sale, and 5% is uncollectible. How much cash should Groundworks Company expect to collect in November from its current and past credit sales?
What will be an ideal response?