Question

In: Accounting

Exercise 13-01 Andrea has prepared the following list of statements about corporations. Identify each statement as...

Exercise 13-01 Andrea has prepared the following list of statements about corporations. Identify each statement as true or false.

1. A corporation is an entity separate and distinct from its owners.

2. As a legal entity, a corporation has most of the rights and privileges of a person.

3. Most of the largest U.S. corporations are privately held corporations.

4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued.

5. The net income of a corporation is not taxed as a separate entity.

6. Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts.

7. The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders.

8. The board of directors of a corporation legally owns the corporation.

9. The chief accounting officer of a corporation is the controller.

10. Corporations are subject to fewer state and federal regulations than partnerships or proprietorships.

Solutions

Expert Solution

1. A corporation is an entity separate and distinct from its owners. TRUE
2. As a legal entity, a corporation has most of the rights and privileges of a person. TRUE
3. Most of the largest U.S. corporations are privately held corporations. FALSE
4. Corporations may buy, own, and sell property; borrow money; enter into legally binding contracts; and sue and be sued. TRUE
5. The net income of a corporation is not taxed as a separate entity. FALSE
6. Creditors have a legal claim on the personal assets of the owners of a corporation if the corporation does not pay its debts. FALSE
7. The transfer of stock from one owner to another requires the approval of either the corporation or other stockholders. FALSE
8. The board of directors of a corporation legally owns the corporation. FALSE
9. The chief accounting officer of a corporation is the controller. TRUE
10. Corporations are subject to fewer state and federal regulations than partnerships or proprietorships. FALSE

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Exercise 23-13 Ayayai Inc., a greeting card company, had the following statements prepared as of December...
Exercise 23-13 Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2017. AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,100 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 34,600 18,000 Inventory 40,300 60,200 Prepaid rent 4,900 4,000 Equipment 152,400 130,600 Accumulated depreciation—equipment (34,800 ) (25,200 ) Copyrights 45,700 49,800 Total assets $310,500 $296,000 Accounts payable $46,100 $40,300 Income taxes payable 4,000 6,000 Salaries and wages...
Exercise 23-13 Bonita Inc., a greeting card company, had the following statements prepared as of December...
Exercise 23-13 Bonita Inc., a greeting card company, had the following statements prepared as of December 31, 2017. BONITA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,100 $6,900 Accounts receivable 61,900 50,600 Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,000 59,400 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation—equipment (34,900 ) (25,100 ) Copyrights 46,100 50,400 Total assets $311,700 $293,200 Accounts payable $45,800 $40,100 Income taxes payable 3,900 6,000 Salaries and wages...
Exercise 23-13 Ivanhoe Inc., a greeting card company, had the following statements prepared as of December...
Exercise 23-13 Ivanhoe Inc., a greeting card company, had the following statements prepared as of December 31, 2017. IVANHOE INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 35,000 18,200 Inventory 40,000 60,500 Prepaid rent 5,000 4,100 Equipment 152,900 131,100 Accumulated depreciation—equipment (35,200 ) (25,100 ) Copyrights 45,800 50,000 Total assets $310,800 $297,300 Accounts payable $46,100 $40,100 Income taxes payable 3,900 5,900 Salaries and wages...
Exercise 13-32 (LO. 5) Andrea is an employee of Fern Corporation and single. She also has...
Exercise 13-32 (LO. 5) Andrea is an employee of Fern Corporation and single. She also has her own business working as a life coach. For 2019, Andrea's wages from Fern were $210,000. Her self-employment income was $30,000 (line 4, Form SE, based on 92.35% of net earnings as a life coach). If required, round any computations to two decimal places. Round final answers to the nearest dollar. a. Compute the total payroll, self-employment, and additional Medicare taxes for Andrea for...
Financial Statement Items Identify the financial statement (or statements) in which each of the following items...
Financial Statement Items Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders’ equity (SSC), balance sheet (BS), or statement of cash flow (SCF). Assets Revenue Cashflow from investing activities Stockholders’ equity Expenses Net change in cash Net Income Liabilities
For each of the following statements, identify whether the statement is true or false, and explain...
For each of the following statements, identify whether the statement is true or false, and explain why. Please limit each response to no more than 2 sentences. a) The probability that a continuous random variable takes a specific value is 0. b) Statistical inference is the process of drawing conclusions about unknown statistics by using known parameters. c) The terms “histogram” and “bar graph” are synonyms. d) If two events A and B are independent, then there is no overlap...
For each of the following statements, identify whether the statement is true or false, and explain...
For each of the following statements, identify whether the statement is true or false, and explain why. Please limit each response to no more than 2 sentences. 1) The probability that a continuous random variable takes a specific value is 0. 2) Statistical inference is the process of drawing conclusions about unknown statistics by using known parameters. 3) The terms “histogram” and “bar graph” are synonyms. 4) If two events A and B are independent, then there is no overlap...
Questions 1. [10 marks] For each of the following statements, identify whether the statement is true...
Questions 1. [10 marks] For each of the following statements, identify whether the statement is true or false, and explain why. Please limit each response to no more than 2 sentences. a) The probability that a continuous random variable takes a specific value is 0. b) Statistical inference is the process of drawing conclusions about unknown statistics by using known parameters. c) The terms “histogram” and “bar graph” are synonyms. d) If two events A and B are independent, then...
Knowledge Check 01 Which of the following statements about the classification of obligations expected to be...
Knowledge Check 01 Which of the following statements about the classification of obligations expected to be refinanced? (Select all that apply.) Check All That Apply Under IFRS, liabilities payable within the coming year are classified as long-term liabilities only if refinancing is completed before the balance sheet date. Under IFRS, liabilities payable within the coming year are classified as long-term liabilities only if refinancing is completed before the balance sheet date. Under IFRS, liabilities payable within the coming year cannot...
13. Which of the following statements is INCORRECT about trading on margin A. It is a...
13. Which of the following statements is INCORRECT about trading on margin A. It is a leveraged equity investment. B. Stocks purchased on margin are registered in street name. C. It increases payoff both on the upside and downside. D. In general, a limit-buy order may be placed to limit potential losses. 17. Consider the following short sale example: an investor borrows 100 shares of a stock from the broker, put down 50% as the initial margin, and sells the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT