Question 1 

(1 point)
 
Current liabilities could include all of the following except:

Question 1 options:

a bank loan due in 18 months

any part of long-term debt due during the current period

an accounts payable due in 30 days

a notes payable due in 9 months

Question 2 (1 point)

 
When preparing the balance sheet for AAA, Inc. for December
31, 2015, which item would not be classified as a current
liability?

Question 2 options:

The current portion of a 30-year mortgage

Income taxes due on September 15, 2016

Note payable due March 1, 2017

Accounts payable

Question 3 (1 point)

 
Obligations due to be paid within one year or the company’s
operating cycle, whichever is longer, are classified as

Question 3 options:

current liabilities

current assets

earned revenues

noncurrent liabilities

Question 4 (1 point)

 
For a business to be considered a corporation:

Question 4 options:

it must pay dividends

its stock must be sold in very large amounts

it must issue both common and preferred stock

it must be organized as a separate legal entity

Question 5 (1 point)

 
Advantages of the corporate form include all of the following
except:

Question 5 options:

easy to raise capital

 ownership interests are transferrable

shares can be purchased in small amounts

legal liability of its owners is unlimited

Question 6 (1 point)

 
Which of the following statements about a corporation
is NOT correct?

Question 6 options:

A corporation has easy transferability of ownership

A corporation is a separate legal entity

A corporation’s owners have unlimited liability

A corporation may have the ability to raise large amounts of capital

Question 7 (1 point)

 
Which of the following is NOT a characteristic of corporate
ownership?

Question 7 options:

Shares of stock can be purchased in small increments

Ownership interests are freely transferable

 Corporate earnings are distributed as interest payments

Stockholders have no liability for the debts of the corporation

Question 8 (1 point)

 
Which of the following statements about the benefits enjoyed by
the owners of common stock is NOT correct?

Question 8 options:

Some classes of common stock can carry more votes than others

Investors in a corporation are called stockholders

If the company ceases operations, stockholders share in any assets remaining before creditors have been
paid.

Stockholders receive a share of the corporation’s profits when distributed as dividends

Question 9 (1 point)

 
Corporations can raise large amounts of money because:

Question 9 options:

the unlimited liability feature makes corporate ownership attractive to investors.

corporate earnings are not taxed.

shares of stock in public companies can easily be bought and sold by investors.

all investments in corporate stock earn money for investors.

Question 10 (1 point)
 
Corporations can raise large amounts of money because:

Question 10 options:

stocks are always a good investment.

investors always prefer to invest in stock so they can receive dividends.

investing in the stock market is the surest way to get rich quick.

shares of stock can be purchased in small amounts, so even small investors can participate.