Harold and Zack have pooled their money together to buy real estate but have filed no formal papers to form a business. Harold, a lawyer, handles all the legal matters and Zack, a real estate broker, finds buyers for the property they have subdivided. Harold and Zack are engaged in a
A. partnership.
B. close corporation.
C. limited liability company.
D. professional corporation.
Answer: A
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Cash withdrawals by owners decrease assets and increase equity
Indicate whether the statement is true or false
Northeast Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from investing activities: Net income$182,000Gain on the sale of equipment 12,300Proceeds from the sale of equipment 92,300Depreciation expense-equipment 50,000Payment of bonds at maturity 100,000Purchase of land 200,000Issuance of common stock 300,000Increase in merchandise inventory 35,400Decrease in accounts receivable 28,800Increase in accounts payable 23,700Payment of cash dividends 32,000
A. ($139,700). B. ($200,000). C. ($107,700). D. ($207,700). E. $107,700.
When a manufacturing company uses a standard cost system, the direct materials cost variance is recorded at the time direct materials are issued in production
Indicate whether the statement is true or false
Which of the following is prohibited in more countries?
A) False advertising B) Advertising to children C) Sexually explicit advertising D) Advertising in a foreign language