65. Limited liability means: a. Stockholders of a corporation are not obligated to pay the corporati

65.
Limited liability means:
a.
Stockholders of a corporation are not obligated to pay the corporation’s debts
out of their own pocket.
b.
Liabilities of a company cannot exceed its assets.
c.
Companies are not allowed to borrow unless they are profitable.
d.
Companies are less likely to be sued if they are formed as a corporation.

[Question]
66.
One disadvantage of the corporate form of business is:
a.
Limited liability.
b.
Access to more capital.
c.
Smaller in size.
d.
Double taxation.

[Question]
67.
The costs of providing goods and services to customers are referred to as:
a. Assets.
b. Expenses.
c. Liabilities.
d.
Revenues.

[Question]
68.
The accounts that represent the resources of the company are called:
a. Liabilities.
b. Revenues.
c. Expenses.
d.
Assets.

[Question]
69.
An alternative form of the accounting equation is:
a.
Net Income = Revenues1clip_image002.gif”> Expenses.
b.
Stockholders’ Equity = Assets + Liabilities.
c.
Assets = Liabilities1clip_image002.gif”> Stockholders’
Equity.
d.
Assets1clip_image002.gif”> Liabilities =
Stockholders’ Equity.

[Question]
70.
The owners’ interest in a corporation is called:
a.
Dividends.
b.
Assets.
c.
Liabilities.
d.
Stockholders’ equity.

[Question]
71.
Creditors’ claims to a corporation’s resources are referred to as:
a.
Dividends.
b.
Assets.
c.
Liabilities.
d.
Stockholders’ equity.

[Question]
72.
Net income can best be described as:
a.
Net cash received by a company during the year.
b.
Revenues minus expenses.
c.
The amount of profits retained in a company for the year.
d.
Resources of a company.

 

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