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WorksheetsCorporations and Other Types of Businesses 3.3.3 ACNT2
Total questions: 20
Worksheet time: 10mins
A _____ rights, privileges, and liabilities are beyond those of an individual.
corporation's
sole proprietorship's
partnership's
limited liability company's (LLC's)
From an accounting standpoint, how is a partnership different from a sole proprietorship?
A partnership has both a drawing account and a capital account.
A partnership has both a drawing account and a capital account.
Owners in a partnership are paid salaries or wages by their company
Expenses for owners' draws are reported on the income statement of a partnership.
In a partnership, the profits, authority, and responsibilities are divided among the owners _____.
depending on each partner's contributions
equally
depending on the terms of the partnership agreement
depending on their time with the partnership
Which type of business requires multiple, complex steps to create it as well as dissolve it?
A partnership
Both a sole proprietorship and a partnership
A sole proprietorship
Both a limited liability company (LLC) and a corporation
Which of the following statements is true about the use of GAAP by government agencies?
Government agencies are never required to follow GAAP.
Government agencies are always required to follow GAAP.
Government agencies are required to follow GAAP only if the company is large and has a certain number of employees.
Government agencies are required to follow GAAP only if the company is unable to support itself from the revenues it generates.
Corporate bylaws should include all of the following information EXCEPT _____.
information about stockholders, voting shares of stock, and the number and type of stock
the political affiliations of board officers
names of corporate board officers and their duties
Identifying information for the corporation
To fill out the articles of incorporation, Susan needs the all of following information EXCEPT _____.
the company's business name
the duration that the company will exist
a description of employee benefits
the purpose of establishing the company
Obtaining an employer identification number (EIN) is important for all of the following EXCEPT _____.
preventing identity theft
establishing business credit
opening a business bank account
getting a tax exemption
Which corporate group's responsibilities include choosing executives and setting their compensation?
Board of directors
The executives themselves
Shareholders
Employees
For a corporation to be eligible for S corporation status, all of the following conditions must be met EXCEPT _____.
it must have fewer than 100 stockholders
it must be incorporated in another state
it must have stockholders who are U.S. citizens
It must offer only one class of stock
All of the following are types of debt capital EXCEPT _____.
bonds
bank loans
corporate stock
credit card balances
Which of the following is NOT a date relevant to the payment of dividends?
Payment/Distribution date
Declaration date
Date of record
Date of inception
Which best describes what Bonnie will need to do to journalize the cash dividends paid out by her employer on the declaration date?
A debit to cash dividends and a credit to dividends payable are made.
A credit to cash dividends and a debit to dividends payable are made.
A credit to cash dividends and a credit to dividends payable are made.
A credit to cash dividends and a credit to dividends payable are made.
As the final step in dissolving his company, John will need to _____.
file a certificate of dissolution
distribute remaining assets to owners
file federal, state, and local tax forms
settle all claims with creditors
When the corporation records the stockholders that receive cash or stock dividends, this is known as _____.
payment/distribution date
declaration date
date of record
payment record
Which form will Nancy use to report her S corporation's corporate income taxes?
Form 940
Form 8050
Form 1138
Form 1120-s
Christina's corporation would like an extension of time for paying their taxes owed. Which form will she use to apply for this extension?
Form 1138
Form 8050
Form 940
Form 1120
Christina determined that her start-up costs, operating expenses, salaries and the costs associated with the corporate medical plan were all _____.
tax-deferred
tax deductions
tax liabilities
taxed as income
Selena's C corporation jewelry business made $226,000 in 2018. What is her pre-deduction tax liability?
$42,460
$45,460
$47,460
$41,460
What tax rates are a C corporation subject to?
Property taxes and consumption taxes
Corporate income tax rate and excise taxes
Corporate income tax rate and consumption taxes
Corporate income tax rate and the dividend tax rate
