Acc 561 Week 6 Final Guide

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Multiple Choice Question 49
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Lower taxes.
Harder to transfer ownership.
Most common form of organization.
Reduced legal liability for investors.

Multiple Choice Question 64
The group of users of accounting information charged with achieving the goals of the business is its
auditors.
creditors.
managers.
investors.

Multiple Choice Question 110
Which of the following financial statements is concerned with the company at a point in time?
Entry field with correct answer
Income statement.
Balance sheet.
Retained Earnings statement.
Statement of cash flows.

Multiple Choice Question 112
An income statement
presents the revenues and expenses for a specific period of time.
summarizes the changes in retained earnings for a specific period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.

Multiple Choice Question 118
The most important information needed to determine if companies can pay their current obligations is the
net income for this year.
relationship between current assets and current liabilities.
projected net income for next year.
relationship between short-term and long-term liabilities.

Multiple Choice Question 124
A liquidity ratio measures the
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
percentage of total financing provided by creditors.
income or operating success of a company over a period of time.
ability of a company to survive over a long period of time.

Multiple Choice Question 165
The convention of consistency refers to consistent use of accounting principles
throughout the accounting periods....