Acc 561final exam Question and Answers 2021

Acc 561final exam Multiple Choice Question 49 Which of the following is an advantage of corporations relative to partnerships and sole proprietorships? Harder to transfer ownership. Lower taxes. Most common form of organization. Reduced legal liability for investors. Multiple Choice Question 64 The group of users of accounting information charged with achieving the goals of the business is its creditors. investors. managers. auditors. Multiple Choice Question 110 Which of the following financial statements is concerned with the company at a point in time? Balance sheet. Income statement. Retained Earnings statement. Statement of cash flows. Multiple Choice Question 112 An income statement presents the revenues and expenses for a specific period of time. summarizes the changes in retained earnings for a specific period of time. reports the assets, liabilities, and stockholders’ equity at a specific date. reports the changes in assets, liabilities, and stockholders’ equity over a period of time. Multiple Choice Question 118 The most important information needed to determine if companies can pay their current obligations is the projected net income for next year. net income for this year. relationship between current assets and current liabilities. relationship between short-term and long-term liabilities. Multiple Choice Question 124 A liquidity ratio measures the income or operating success of a company over a period of time. percentage of total financing provided by creditors. ability of a company to survive over a long period of time. short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash. Multiple Choice Question 165 The convention of consistency refers to consistent use of accounting principles