Which of the following is considered by accountants to be a separate entity from its owner(s)?
a. Partnership only
b. Sole proprietorship only
c. Corporation only
d. Sole proprietorship, partnership, and corporation
D
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(CMA adapted, Dec 93 #17) Norton Inc has a 2 to 1 current ratio. This ratio would increase to more than 2 to 1 if
a. a previously declared stock dividend were distributed. b. the company wrote off an uncollectible receivable. c. the company sold merchandise on open account that earned a normal gross margin. d. the company purchased inventory on open account. e. none of the above.
Which of the following is true of nonprofit organizations?
A. The cost of government (i.e., taxes) has become a big item in the American family budget but remains less than health care. B. Together, federal, state, and local governments collect tax revenues that amount to almost half of the U.S. GDP. C. Nonprofit organizations do not include private museums, theaters, schools, and churches. D. Nonprofit services vary greatly from producer to producer and from day to day, even from the same producer.
A party seeking to recover in quasi contract must show that there was an actual contract or agreement between the parties.
Answer the following statement true (T) or false (F)
Unused capital budget funds are assumed to earn the same rate of return as the average cost of capital for the firm. In other words they may be invested in $0.0 NPV projects. (Or, alternatively, excess funds may be returned to creditors and shareholders.)
Indicate whether the statement is true or false.