Quiz Ch 01 – T/F Stockholders’ Equity and Corporate Assets
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
The assets of a corporation represent the interest of the stockholders’ equity.
The assets of a corporation represent the interest of the stockholders’ equity.
The statement of financial position is also known as the balance sheet.
The going-concern assumption is another name for the continuity assumption.
True or False: Do partnerships and proprietorships usually possess a tax advantage compared to corporations?
True or False: Opting for S corporation taxation allows both the corporation and its stockholders to escape all Federal taxes, and was this provision introduced in the Federal Tax Code to stimulate the creation of small businesses?
True or False: If a corporation opts to be taxed as an S corporation, can it bypass corporate tax, though its stockholders will need to pay personal taxes on the company’s net income?
The AICPA Code of Professional Conduct provides its members with fundamental principles that guide them in carrying out their professional responsibilities.
True or false: Considering an IOU (“I owe you”) from your brother-in-law as a financial asset is valid.
True or false: An effectively crafted compensation package can contribute to a company’s pursuit of maximizing its market value.
Accounting measures business activities through an information system.