Advantage of the corporate form of business organization

Assignment Help Managerial Accounting

Reference no: EM131221066

1. Which one of the following is not a key linkage among the four primary financial statements?

A. The expenses in the income statement link to the total liability balance.

B. The statement of cash flows links to ending cash balance reported on the balance sheet.

C. The income statement links to the ending retained earnings in the statement of retained earnings.

D. The statement of retained earnings links to ending retained earnings on the balance sheet.

2. Which of the following is NOT an advantage of the corporate form of business organization?

A. The ease with which capital can be raised

B. The protection afforded stockholders against personal liability

C. Both the business and the owners are taxed

D. The relative ease of selling ownership shares.

Reference no: EM131221066

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