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Unformatted text preview: ACC 556 Week 5 Midterm Exam – Strayer NEW Click On The Link Below To Purchase A Graded Material Instant Download 1 Through 8 CHAPTER 1 INTRODUCTION TO FINANCIAL STATEMENTS TRUE-FALSE STATEMENTS 1. FOR INSTRUCTOR USE ONLY A Further Look at Financial Statements 2-3 14.
A business organized as a separate legal entity owned by stockholders is a partnership. Corporate stockholders generally pay higher taxes but have no personal liability. The liability of corporate stockholders is limited to the amount of their investment. The purchase of equipment is an example of a financing activity. Assets are resources owned by a business and provide future services or benefits to the business.
A corporation has which of the following set of characteristics? Shared control, tax advantages, increased skills and resources b.
Harder to raise funds and gives owner control FOR INSTRUCTOR USE ONLY 2-7 A Further Look at Financial Statements 51.
Easier to transfer ownership and raise funds, no personal liability d.
has tax advantages over a proprietorship or partnership.
is a common form of organization for service-type businesses.
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