Limited liability means:
A. Companies are not allowed to borrow unless they are profitable.
B. Companies are less likely to be sued if they are formed as a corporation.
C. Liabilities of a company cannot exceed its assets.
D. Stockholders of a corporation are not obligated to pay the corporation's debts out of their own pocket.
Answer: D
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Businesses use _____ to analyze data.
A. models B. ideas C. facts D. beliefs
Which of the following statements is false regarding forensic accounting?
a. Forensic accounting builds support for legal action against the person committing the fraud by identifying the fraud, calculating the damages caused by the fraud, and building both factual and testimonial evidence of the fraud. b. Forensic accountants rely on sampling of fraud-related documents to accurately measure the cost of the fraud. c. One aspect of forensic accounting focuses on identifying the person who has perpetrated the fraud and having that person confess to the fraud. d. Interviewing is one of the most important forensic accounting skills.
________ is a type of marriage some states recognize in which a marriage license has not been issued but certain requirements are met
A) Emancipation B) Common law marriage C) Free union D) Cohabitation marriage
The JKL partnership liquidated its business in 20X9. Due to an expected long liquidation period, a cash distribution plan was developed. The initial sale and realization of cash from noncash assets resulted in partner K properly getting $24,000. No other partners received cash along with K. Based upon this information, which of the following statements is correct?I. K's loss absorption potential (LAP) was higher than J's LAP and L's LAP. II. K's capital balance was substantially larger than the balances of J and L.
A. II only B. Neither I nor II C. Either I or II D. I only