Reference no: EM132289259
1. One of the disadvantages of forming a proprietorship is that it is subject to many government regulations.
True
False
2. Sarbanes-Oxley Act was passed by Congress in the wake of a series of accounting scandals in the early 2000s.
True
False
3. A major disadvantage of operating as a proprietorship is that it creates unlimited liability for the business's debt.
True
False
4. Double taxation can be avoided by forming a "S Corporation".
True
False
5. An estimate of a stock's "true" value based on accurate risk and return is known as the company's market price.
True
False
6. The verbal section of a company's annual report discusses the company's past year's performance and future prospects.
True
False
7. Income Statement gives a "snapshot" of a company's assets and who has claims on them on a given date.
True
False
8. Stockholders' Equity can be calculated by subtracting total liabilities from total assets.
True
False
9. Cost of assets depleted in the production process such as machinery, equipment, vehicle, etc. is known as amortization.
True
False
10. The amount of cash that could be withdrawn without harming a firm's ability to operate and produce future cash flow is known as free cash flow.
True
False