Answer the following statement(s) true (T) or false (F)
1. Corporations account for most of the sales in the U.S. economy but less than 20 percent of the number of businesses in operation.
2. An S corporation allows shareholders to be treated as individuals for tax purposes.
3. A corporation that is doing business in a state other than the one in which it is incorporated is called an alien corporation.
4. A written partnership agreement should only include the names of the partners and the duties of each partner.
5. The duty of care requires that the board of directors act on behalf of the organization and avoid conflicts of interests.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. FALSE
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Vouching recorded transactions involves taking a sample entry from a journal and obtaining the original source documents to ensure the transaction occurred
a. True b. False Indicate whether the statement is true or false
Which element below is defined as the act of transmitting thoughts, processes, and ideas through a variety of channels?
A. conveyance B. communication C. television D. motivation
Firms recognize revenue
a. when they have completed an earnings process or performed most or all of their obligations to customers, usually the delivery of a product or service. b. when they have received cash or a receivable capable of sufficiently reliable measurement. c. using the percentage-of-completion method when the firms sell products under long-term contracts, such as construction companies. d. using the completed contract method [U.S. GAAP, only] when firms cannot reasonably estimate revenues and costs. e. all of the above
Which of the following decisions requires knowledge based on collaboration and interaction?
A) How long will it take to manufacture this product? B) Should we work with outside vendors on new products and services? C) In which geographical locations are our products garnering the most sales? D) Which product design is the most efficient for the user in terms of energy use? E) How can we produce this product more cheaply?