ACCOUNTING 333 CHAPTER 1 PRACTICE QUIZ

ACCOUNTING 333 CHAPTER 1 PRACTICE QUIZ The treasurer and the controller of a corporation generally report to the: o president. o board of directors. o chief executive officer. o chief financial officer. o chairman of the board. 2. Which one of these best describes the key difference between the duties of the controller and those of the treasurer? o Separation of duties related to assets versus those related to debt and equity o Separation of authority over tax records versus accounting records o Separation of reporting to the Boards of Directors versus directly to investors. o Separation of duties related to production versus marketing o Separation of cash control from accounting records 3. Which position is generally directly responsible for financial planning and capital expenditures? o Controller o Treasurer o Director o Chairman of the board o Chief operations officer 4. Which form(s) of business is a treated as a distinct legal entity separate from its owners? o Limited partnership o Sole proprietorship o General partnership o Corporation o Both a limited partnership and a corporation 5. Which one of these is a corporate document that sets forth the intended life of the firm? o Federal charter o Articles of incorporation o Corporate bylaws o Indenture contract o State charter 6. A general partner: o cannot lose more than the amount of his/her equity investment. o has less legal liability than a limited partner. o faces double taxation whereas a limited partner does not. o has more management responsibility than a limited partner. o is the term applied only to corporations which invest in partnerships.