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Accounting Questions - Which of the following is not an advantage of the corporate form of business organization?

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Which of the following is not an advantage of the corporate form of business organization?
a. No personal liability
b. Easy to transfer ownership
c. Favorable tax treatment
d. Easy to raise funds

Which of the following would be considered an "Other Comprehensive Income" item?
a. Net income
b. Gain on disposal of discontinued operations
c. Extraordinary loss related to flood
d. Unrealized loss on available-for-sale securities

Incron Corporation began the year with retained earnings of $217,000. During the year, the company issued $294,000 of common stock, recorded expenses of $840,000, and paid dividends of $56,000. If Incron's ending retained earnings was $231,000, what was the company's revenue for the year?
a. $854,000
b. $910,000
c. $1,148,000
d. $1,204,000

Javier's Tune-Up Shop follows the revenue recognition principle. Javier services a car on August 31. The customer picks up the vehicle on September 1 and mails the payment to Javier on September 5. Javier receives the check in the mail on September 6. When should Javier show that the revenue was earned?
a. August 31
b. August 1
c. September 5
d. September 6

In a small business, the lack of certain separations of duties can best be overcome by
a. bonding the employees.
b. getting the owner actively involved.
c. hiring only honest employees.
d. holding one person responsible for a given set of transactions.

Solution Preview

Which of the following is not an advantage of the corporate form of business organization?
a. No personal liability
b. Easy to transfer ownership
c. Favorable tax treatment
d. Easy to raise funds

Answer: C

Which of the following would be considered an "Other Comprehensive Income" item?
a. Net income
b. Gain on disposal of discontinued operations
c. Extraordinary loss related to flood
d. Unrealized loss on available-for-sale ...

Solution Summary

This solution is comprised of a detailed explanation to answer the accounting questions.

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