Reference no: EM132737815
Problem 1: Which of the following is not an advantage of organizing a corporate form of business?
A) It has stronger credit availability because of its continued existence
B) A corporation is subject to income tax rate that is lower than that of partnership
C) The liability of the shareholders is limited only to their contribution to the corporation
D) A corporation's existence is not affected by transfer of ownership shares
Problem 2: The account "Supplies" will appear in the following debit columns of the worksheet, except:
A) Statement of financial position
B) Income statement
C) Adjusted trial balance
D) Trial balance
Problem 3: In accounting for the liquidation of a partnership, cash payments to partners after all outside creditors' claims have been satisfied, but before the final cash distribution, should be made according to:
A) The final balances in partners' capital accounts
B) Partners' share of the gain or loss on liquidation
C) The partners' profit and loss sharing ratio
D) Safe payments computation