Which of the following transactions correctly maintains the equality in the accounting equation? a. To record collections on account, cash and accounts receivable are increased by P160,000. b. To record the purchase of computer equipment, computer equipment is increased and cash is decreased by P46,000. c. To record payment of notes, notes payable is decreased and cash is increased by P70,000. d. To record payment of rent, rent expense and cash are increased by P8,000.

(a)  

Which of the following combinations of trial balance totals suggest the presence of either a transposition error or a number slide? a. P55,470 debit and P68,170 credit b. P33,220 debit and P35,420 credit C. P25,670 debit and P26,670 credit d. P14,517 debit and P15,477 credit

(a)  

The first financial statement that is prepared from the trial balance is the a. statement of cash flows. b. statement of changes in equity. c. income statement. d. balance sheet.

(a)  

The amount of cash received or paid during a period is not an adequate measure of the economic consequences of an organization's activities because a. many activities may not involve the use of cash. b. cash inflows may represent the result of activities completed in a previous period. c. cash outflows may precede or follow the activities with which they are associated. d. All of the above reasons are correct.

(a)  

Which of the following is a business event that is not considered a recordable transaction? a. ' An entity receives a product previously ordered. b. An entity pays an employee for work performed. c. A customer inquires about the availability of a service. d. A customer purchases a service.

(a)  

Which of the following is a business event that is also considered a recordable transaction? a. An entity hires a new employee. b. A customer purchases merchandise. c. An entity orders a product from a supplier. d. An emplovee sends a purchase requisition to the purchasing department.

(a)  

Balance sheet accounts are a. permanent accounts. b. temporary accounts. c. accounts with debit balances only. d. adjusting accounts.

(a)  

A journal entry that contains more than two accounts is called a. a posted journal entry. b. a compound journal entry. c. an adjusting journal entry. d. an erroneous journal entry.

(a)  

When accounting information is accumulated in individual accounts, a chart of accounts is a. limited to those accounts that will appear in the balance sheet. b. changed each year by an entity depending on the results of operations. c. a listing of each account that will be used to accumulate information. d. used to determine whether a debit or credit balance will appear in each of the accounts at the end of the accounting period.

(a)  

Which of the following events would not be considered an accounting transaction? a. Payment of fees to a tax consultant. b. Purchase of print advertising space for a new service. c. Sales of a new product during the first month of operations. d. Tabulation of the results of a customer satisfaction survey.

(a)  

The term footing refers to the a. process of obtaining the top number in an account. b. process of obtaining the bottom number in an account. c. process of posting. d. addition of a column of figures.

(a)  

What function do general ledgers serve in the accounting process? a. Summarizing b. Recording c. Classifying d. Reporting

(a)  

A chart of accounts is a (an) a. journal. b. flowchart of all transactions. c. list of names of all account titles. d. accounting procedure manual.

(a)  

The purpose of the ledger is to a. record chronologically the day's transactions. b. keep a record of documentation to support each transaction. c. maintain a separate account for each balance sheet and income statement accounts. d. make sure that all balance sheet and income statement accounts have normal balances at all times.

(a)  

The first step in recording a transaction in a journal is to a. record the debit. b. record the date. c. record the credit. d. write an explanation.

(a)  

Which of the following accounts is classified differently from the others listed? a. Notes Payable b. Unearned Revenues c. Mortgage Payable d. Art Revenues

(a)  

Which of the following accounting steps is accomplished after the others listed? a.Post the entry. b. Prepare the trial balance. c. Apply the rules of double entry. d. Record the entry.

(a)  

At the end of an accounting period, the equation Assets = Liabilities + Owner's Equity does not necessarily balance. Which of the following actions balances the equation? a.Subtract revenues and add expenses to owners' equity. b. Subtract revenues from owners' equity and add expenses to assets. c. Add the difference between revenues and expenses to owner's equity. d. Add revenues and subtract expenses from assets.

(a)  

Which of the following steps in the accounting cycle are listed in logical order? a. Prepare the income statement, prepare the statement of financial position and then prepare a worksheet: b. Post the journal entries to the ledger accounts, prepare a worksheet, and then take a trial balance. c. Journalize the closing entries, post the closing entries, and then take a post-closing trial balance. d. Post the closing entries, take a post-closing trial balance, then journalize the closing entries.

(a)  

If the balance of the Perez, Withdrawals account were P120,000 and the balance of the Salaries Expense account were P50,000, what would be the amount of B? a. a. P180,000 b. P580,000 c. P370,000 d. P380,000

(a)  

If the trial balance showed a balance of P70,000 in the Perez, Withdrawals account and a balance of P50,000 in the Salaries Expense account, what would be the amount of Advertising Revenues for the period? a.P330,000 b. P480,000 c. P180,000 d. P430,000

(a)  

In the trial balance, total assets equal a.P330,000. b.P230,000. C. P430,000. d. P410,000.

(a)  

If the trial balance showed a balance of P80,000 in the Salaries Expense account and a balance of P350,000 in the Advertising Revenues account, what would be the amount of A? a. P500,000 b. P550,000 c. P450,000 d. P600,000

(a)  

If the trial balance showed a balance of P40,000 in the Salaries Expense account and amount of the Perez, Withdrawals account? a balance of P300,000 in the Advertising Revenues account, what would be the a. P250,000 b. P190,000 c. P140,000 d. P50,000

(a)  

The Posting Reference column in the ledger shows that an item has been posted when which of the following is placed in it? a. An "X" b. The account number c. The journal page number d. A check mark

(a)  

Which of the following transactions does not affect the balance sheet totals? a. Purchasing P50,000 supplies on account b. Collecting P40,000 from customers on account c. Paying a P300,000 note payable d. Withdrawal of P80,000 by the firm's owner

(a)  

The accrual basis of accounting recognizes a. revenues when cash is received b.expenses when cash is paid c. revenues when products are produced as part of operating activities d.expenses when resources are consumed as part of operating activities

(a)  

An error of original entry occurs when a. either the debit entry or the credit entry for a particular transaction is recorded in the wrong class of account b. a correct figure is entered in the double-entry accounting records, once in the correct ledger account and once in the wrong person's account c. an incorrect figure is entered on the correct sides of the correct ledger accounts. d. None of the above

(a)  

Which of the following statements is true about a proper journal entry? a. An explanation must follow each debit and each credit. b. The name of the month should be repeated for each entry. c. The Posting Reference column is filled in prior to posting. d. All debits are listed before any credits.

(a)  

An entity receives rent for subletting part of its office block. The rent, receivable quarterly in advance, follows:

(a)  

An entity pays rent quarterly in arrears on Jan. 1, Apr. 1, July 1 and Oct. 1 each year. The rent was increased from P900,000 per year to P1,200,000 per year starting Oct. 1, 2021. What rent expense and rent payable amounts should be included in the entity's financial statements for the year ended Jan. 31, 2022? Rent Expense - Rent Expense a. P1,000,000 -P200,000 b. P1,000,000 -P100,00 c. P975,000 -P100,000 d. P975,000 -P200,000

(a)  

At Mar. 31, 2021, an entity had oil on hand to be used for heating costing P82,000 and an unpaid heating oil bill for P36,000. At Mar. 31, 2022, the heating oil on hand was P93,000 and there was an outstanding heating oil bill of P32,000. Payments made for heating oil during the year ended Mar. 31, 2022 totaled P346,000. What is the amount of heating oil that would appear on the entity's 2022 income statement? a. P239,000 b. P361,000 C. P453,000 d. P331,000

(a)  

An entity has sublet part of its offices and in the year ended Nov. 30, 2022 the rent receivable was: Until June 30, 2022 P84,000 per year From July 1, 2022 P120,000 per year Rent was collected quarterly in advance on Jan. 1, Apr. 1, July 1 and Oct. 1 each year. What amounts should appear in the entity's financial statements for the year ended Nov. 30, 2022? Rent Receivable Statement of Financial Position a. P99,000 P20,000 in Unearned Rent Revenues b. P99,000 P10,000 in Unearned Rent Revenues c. P102,000 P10,000 in Unearned Rent Revenues d. P99,000 P20,000 in Prepaid Rent

(a)  

A business compiling its financial statements for the year to July 31 each year pays rent quarterly in advance on Jan. 1, Apr. 1, July 1 and Oct. 1 each year. The annual rent was increased from P600,000 per year to P720,000 per year starting Oct. 1, 2021. What figure should appear for rent expense in the entity's income statement for the year ended July 31, 2022? a. P690,000 b. P620,000 c. P700,000 d. P630,000

(a)  

Diesel fuel in inventory at Nov. 1, 2021 was P12,500, and there were invoices awaited for P1,700. During the year to Oct. 31, 2022, diesel fuel bills of P85,400 were paid, and a delivery worth P1,300 had yet to be invoiced. At Oct. 31, 2022, the inventory of diesel fuel was valued at P9,800. What is the value of diesel fuel to be charged to the income statement for the year ended Oct. 31, 2022? a. P87,700 b. P89,400 c. P88,500 d. P91,100

(a)  

7. During 2021, an entity paid a total of P600,000 for rent, covering the period from Oct. 1, 2020 to Mar. 31, 2022. What figures should appear in the entity's financial statements for the year ended Dec. 31, 2021? Income Statement a. P400,000 b. P400,000 c. P500,000 d. P500,000 Statement of Financial Position P100,000 Prepayment P150,000 Prepayment P100,000 Accrual P150,000 Accrual (MAGKATAPAT TO)

(a)  

What are the correct journal entries to record an accrual in the accounts? Dr. Cr. a. Asset Expenses b. Expenses Liability c. Liability Expenses d. Expenses Asset

(a)  

The trainee accountant has forgotten to make an accrual for December rent in the financial statements for the vear ended Dec. 31, 2022. Rent is charged in arrears at the end of Feb., May, Aug, and Nov. each year. The bill payable in Feb. is expected to be P300,000. Draft income statement shows a profit of P250,000 and draft statement of financial position shows net assets of P2,750,000. What is the profit or loss for the year and what is the net asset position after the accrual has been included in the financial statements? Profit for the Year a. P150,000 b. P150,000 c. P350,000 d. P350,000 Net Asset P2,650,000 P2,850,000 P2,650,000 P2,850,000

(a)  

Draft accounts for the year ended Oct. 31, 2022 report a loss of P148,600. The entity did not include an accrual of P162,500 and a prepayment of P83,400. What is the profit or loss for the year ended Oct. 31, 2022 following the inclusion of the accrual and prepayment? a. A loss of P69,500 b. A loss of P227,700 C. A loss of P394,500 d. A profit of P180,700

(a)  

The partnership agreement of Niza and Sala provides the interest at 10% per year is to be credited to each partner on the basis of weighted-average capital balances. A summary of Sala's capital account for the year ended Dec. 31, 2021 follows: Balance, Jan. 1 P420,000 Additional Investment, July 1 120,000 Withdrawal, Aug. 1 (45,000) Balance, Dec. 31 495,000 What amount of interest should be credited to Sala's capital account for 2021? a. P45,750 b. P46,125 c. P49,500 d. P51,750

(a)  

Barroga and Gonzales are partners who shares profits and losses in the ratio of 60:40, respectively. Barroga's salary is P60,000 and P30,000 for Gonzales. The partners are also paid interest on their average capital balances. In 2021, Barroga received P30,000 of interest and Gonzales, P12,000. The profit and loss allocation is determined after deductions for the salary and interest payments. If Gonzales' share in the residual profit (profit after deducting salaries and interest) was P60,000 in 2021, what was the total partnership profit? a. P192,000 b. P282,000 c. P345,000 d. P387,000

(a)  

Cabance, a partner in the Cabance and Mendoza Partnership has a 30% share in the partnership profit and loss. His capital account had a net decrease of P60,000 in 2021. In 2021, he withdrew P130,000 against his capital and invested property valued at P25,000 in the partnership. The profit of the partnership is a. P550,000. b. P350,000. c. P233,333. d. P150,000.

(a)  

Antiporda and Sy are partners who share profits and losses after salary and interest allowances in the ratio of 60:40, respectively. Antiporda's salary is P20,000 and Sy's is P10,000. The partners are also paid interest on their average capital balances. In 2021, Antiporda received P10,000 in interest and Sy P4,000. If Sy's share of partnership profit was P40,000 in 2021, what was the total partnership profit? a. P 95,000 b. P100,000 c. P109,000 d. P144,000

(a)  

In its first year of operations, the partnership of Reyes, Baliño and Dimalanta made a profit of P20,000, before providing for salaries of P5,000 and 3,000 per annum for Reyes and Baliño, respectively. The capital contributions of the partners are as follows: Reyes, P30,000; Baliño, P20,000 and Dimalanta, P10,000. Assuming that no profit and loss ratio are provided in the partnership agreement and that there has been no change in the capital contributions during the year, how much profit share would Reyes be entitled to receive? a. P11,000 b. P15,000 c. P10,000 d. P 5,000

(a)  

If a partnership has profit of P44,000 and Partner Garcesa is to be allocated a bonus of 10% of profit after the bonus, Garcesa's bonus would be a. P4,400. b. P3,600. c. P4,000. d. None of the above.

(a)  

The Marasigan and Rosales partnership agreement provides special compensation to the managing partner, Marasigan; Marasigan receives a bonus of 15% of profit before salary and bonus; and also receives a salary of P45,000. Any remaining profit or loss is to be allocated equally. During 2021, the partnership had profit of P50,000 before the bonus and salary allowances. As a result of these distributions, Rosales' equity in the partnership would a. increase. b. decrease. c. decrease the same as Marasigan's. d. not change.

(a)  

Abulencia and Daguiso have the following profit and loss agreement: salaries of P30,000 and P45,000 for Abulencia and Daguiso, respectively; a bonus to Abulencia of 10% of profit after salaries and bonus; and interest of 10% on average capital balances of P20,000 and P35,000 for Abulencia and Daguiso, respectively. One-third of any remaining profit is allocated to Abulencia and the balance to Daguiso. If the partnership had profit of P102,500, how much should be allocated to Abulencia? a. P41,000 b. P41,167 c. P44,250 d. P47,500

(a)  

On Jan. 2, 2021, Basilio and Quezada formed a partnership. Basilio contributed capital of P175,000 and Quezada, P25,000. They agreed to share profits and losses in the ratio of 8:2, respectively. Quezada is the general manager and works in the partnership full time. Quezada is given a salary of P5,000 a month, an interest of 5% of the beginning capital (of both partners) and a bonus of 15% of profit before salary, interest and bonus. The statement of financial performance of the partnership for the year ended Dec. 31, 2021 follows: Net Sales P875,000 Cost of Goods Sold 700,000 Gross Profit P175,000 Expenses (including the 143,000 salary, interest and the bonus) Profit P 32,000 The amount of bonus to Quezada in 2021 amounted to: a. P16,456. b. P13,304. c. P20,700. d. P18,000.

(a)  

Nabua is trying to decide whether to accept a salary of P40,000 or a salary of P25,000 plus a bonus of 10% of profit after the bonus as a way of dividing profits among the partners. What amount of profit would make the choices equal? a. P150,000 b. P165,000 c. P 15,000 d. P135,000

(a)  

Tanupan is trying to decide whether to accept a salary of P40,000 or a salary of P25,000 plus a bonus of 10% of profit after salaries and bonus as a way of dividing profits among the partners. Salaries traceable to the other partners is P100,000. What amount of profit would make the choices equal? a. P165,000 b. P265,000 c. P290,000 d. P305,000

(a)  

Hermocilla, Gonzaga, and Mallari are partners with average capital balances during the year of P120,000, P60,000 and P40,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P30,000 to Hermocilla and P20,000 to Gonzaga, the residual profit or loss is divided equally. The partnership sustained a P33,000 loss before interest and salaries to partners. By what amount should Hermocilla's capital account change? a. P42,000 increase b. P35,000 decrease c. P11,000 decrease d. P 7,000 increase

(a)  

Espiritu and Cheng have the following profit and loss agreement: salaries of P30,000 and P45,000 for Espiritu and Cheng, respectively; a bonus to Espiritu of 10% of profit after salaries and bonus; interest of 10% on average capital balances of P20,000 and P35,000 for Espiritu and Cheng, respectively; and any balance equally. If the profit is P102,500, how much should be allocated to Espiritu? a. P58,250 b. P47,796 c. P44,250 d. P44,125

(a)  

Santos and Gloria share profits in the ratio of 3:2. However, Santos is to receive a bonus of 20% of the profits, in addition to his profit share. The partnership made a profit for the year of P24,000 before the bonus. Assuming Santos' bonus is computed on profit after deducting said bonus, how much profit share will Gloria receive? a. P15,200 b. P 8,000 c. P 9,600 d. P 9,000

(a)  

Ravelo and Febrero are partners agreeing to allow monthly salaries of P6,000 and P5,000, respectively; 6% interest on the capital investment at the beginning of the year of P300,000 and P230,000, respectively; and the balance equally. The first year registered a profit of P100,000. The partners' share should be a. Ravelo, P58,100; Febrero, P41,900. b. Ravelo, P56,600; Febrero, P43,400. c. Ravelo, P54,500; Febrero, P45,500. d. Ravelo, P50,000; Febrero, P50,000.

(a)  

The partnership agreement of Santiago and Generales provided that interest of 10% per annum is to be credited to each partner on the basis of average capital balances. A summary of Generales' capital account for the year ended Dec. 31, 2021 follows: Balance, Jan. 1 P280,000 Additional Investments, July 1 80,000 Withdrawal, August 1 (30,000) Balance, Dec. 31 P330,000 The amount of interest that should eventually be credited to Generales' capital is a. P30,500. b. P33,000. c. P30,750. d. P34,500.

(a)  

Un, Balaba, and Monta are partners with average capital balances during 2021 of P360,000, P180,000, and P120,000, respectively. Partners receive 10% interest on their average capital balances. After deducting salaries of P90,000 to Un and P60,000 to Monta, the residual profit or loss is divided equally. In 2021, the firm sustained a P99,000 loss before interest and salaries to partners. By what amount should Un's capital account change? a. P105,000 decrease b. P33,000 decrease c. P21,000 increase d. P126,000 increase

(a)  

Partner Quito had a beginning capital balance of P35,000 and made additional investments of P27,000 during the year. In the same year, Quito made drawings of P5,000 per month. The post-closing capital balance of Quito is P72,000. What is his share in the partnership profit? a. P70,000 b. P15,000 c. P60,000 d. P72,000

(a)  

Carlos and her very close associate Liggayu formed a partnership on Jan. 1, 2021 with Carlos contributing P16,000 cash while Liggayu contributing equipment with a book value of P6,400 and a fair value of P4,800 and inventory items with a book value of P2,400 and a fair value of P3,200. During 2021, Liggayu made additional investments of P1,600 on April 1 and P1,600 on June 1, and on Sept. 1, he withdrew P4,000. Carlos had no additional investments or withdrawals during the year. The average capital balance at the end of 2021 for Liggayu is a. P7,200. b. P8,000. c. P8,800. d. P9,600.

(a)  

Langbay, Villota and Hernandez are partners in an accounting firm. Their ending capital account balances were: Langbay, P90,000; Villota, P110,000 and Hernandez. P50,000. They share profits and losses in a 4:4:2 ratio, after the following special terms: • Partner Hernandez is to receive a bonus of 10% of the profit after bonus. • Interest of 10% shall be paid on that portion of the partner's capital in excess of P100,000. • Salaries of P10,000 and P12,000 shall be paid to partners Langbay and Hernandez, respectively. Assuming profits of P44,000 in 2021, the total profit share of Hernandez would be a. P 7,800. b. P19,800. c. P16,800. d. P19,400.

(a)  

An ordinary or preference shareholder is similar to a (a)   because he can lose no more than the value of the investment. a general partner b. limited partner c. sole proprietor d. nominal partner e. stockbroker

What is the primary disadvantage of both a sole proprietorship and a partnership that a corporation overcomes? a. No access to capital b. Taxing complications c. Unlimited liability d. Ease of start-up e. Lack of secrecy

(a)  

A corporation whose stock can be purchased by anyone and is traded in stock markets is known as a(n) a. government-owned corporation. b. close corporation. c. open corporation. d. not-for-profit corporation.

(a)  

Shares of 1st Global StratDev stock cannot be purchased in any stock exchange or by just any individual. This means that 1st Global StratDev is a(n) a. partnership. b. open corporation. c. family corporation. d. close corporation.

(a)  

When organizing a corporation, the incorporators submit articles of incorporation to a. a judge. b. the Securities and Exchange Commission. c. the National Bureau of Investigation. d. the Board of Investments.

(a)  

Ordinary shares carry all the following rights except the right to a. share in profits. b. receive information about the corporation. c. receive part of the profit before other classes of d. attend the annual shareholders' meeting. shares.

(a)  

How can the following statement be best explained: "Shareholders control the activities of a corporation"? a. All shareholders vote on all the major issues and problems that a corporation faces on a monthly basis. b. Shareholders are intricately involved in the daily operations of a corporation. c. Shareholders elect the board of directors, and this board is responsible for appointing corporate officers who manage the daily business of the corporation. d. Shareholders vote for the members of the board of directors and this board makes all the daily business decisions for the corporation. e. Shareholders usually call corporation management and tell executives better ways to run the organization.

(a)  

The top governing body of a corporation is known as the a. incorporators. b. shareholders. c. management. d. officers. e. board of directors.

(a)  

Corporate officers are a. Elected by shareholders b. Appointed by the board of directors c. Appointed by management d. Elected by incorporators

(a)  

Which of the following is not a disadvantage of the corporate form of ownership? a. Difficulty of formation b. Limited liability c. Expense of incorporation and selling stock d. Lack of secrecy

(a)  

The order of difficulty and expense, from most to least, when forming a business organization is as follows: a. Corporation, sole proprietorship, partnership b. Corporation, partnership, sole proprietorship c. Partnership, corporation, sole proprietorship d. Sole proprietorship, partnership, corporation

(a)  

Which of the following qualifications is necessary in order that one may be elected president of the corporation? a. He must be a citizen and a resident of the Philippines. b. He must be a director of the corporation c. He must not be a shareholder or director of a competitor corporation d. He must not be a president of any other corporation. e. All of the above

(a)  

It is the supreme authority in matters of management of the regular and business affairs of a corporation. a. Board of directors b. Majority shareholders c. Minority shareholders d. None of the above

(a)  

The following are the steps in the creation and organization of a corporation except a. incorporation. b. promotion. c. formal organization and commencement of business operations. d. none of the above.

(a)  

The par value of ordinary shares is equal to a. amount received by the corporation when the share was originally issued. b. the amount at which the share is currently trading in an organized market. c. a designated peso amount per share established in the articles of incorporation. d. the book value of the ordinary shares.

(a)  

The arbitrary value assigned to a share of stock is called a. market value. b. par value. c. liquidation value. d. book value.

(a)  

right of the corporation to continue as a juridical entity for the period stated in the Articles of Incorporation despite the death of any shareholder: a. right of succession b. right of pre-emption c. right of existence d. none of the above

(a)  

The directors of a corporation are responsible for a. declaring dividends. b. maintaining shareholder records. c. the day to day managing of the business. d. preparation of accounting records and financial statements.

(a)  

A corporation has the following attributes except a. an artificial being with a personality separate and apart from its shareholders. b. created by operation of law c. enjoys the right of succession d. has the powers, attributes and properties expressly authorized by law or incident to its existence. e. none of the above

(a)  

The owners of shares in a stock corporation are called a. incorporators. b. promoters. c. members. d. shareholders.

(a)  

Refers to an equitable right of shareholders to subscribe to newly issued shares of the corporation in proportion to their present shares in order to maintain their equity in their surplus as well as proportionate standing in the corporation. a. right of redemption b. pre-emptive right c. right to be sued d. concept of corporate entity

(a)  

The advantage of a corporation from a partnership is a. The death of a shareholder will not dissolve the corporation because of its power of succession. b. Its management is centralized on the board of directors. c. Shareholders have limited liability. d. Shareholders are not general agents of the business. e. all of the above

(a)  

The most powerful person in a corporation is the a. incorporator. b. president. c. vice-president. d. chairman of the board.

(a)  

The shareholders or members mentioned in the Articles of Incorporation originally forming and composing the corporation and who are signatories thereof are called a. incorporators. b. corporators. c. promoters. d. subscribers.

(a)  

One of the following is not a characteristic of the corporate form of organization. a. limited liability of shareholders b. mutual agency c. continuous existence d. centralized authority

(a)  

The ordinary stock of the corporation entitling the owner to pro-rata dividends without any priority over any other shareholders but equally with all other shareholders except preference shareholders is a. preference share. b. guaranteed share. c. convertible share. d. ordinary share.

(a)  

One who has agreed to take shares from the corporation on the original issue of such share is called a. incorporator. b. member. c. promoter. d. subscriber. e. none of the above

(a)  

No par value shares cannot be issued a. for less than P5.00. b. with preference as to assets or as to dividends. c. without being fully paid. d. by banks, trust, insurance and preneed companies, public utilities, building and loan associations and other corporations obtaining funds from the public. e. all of the above.

(a)  

Which of the following is a disadvantage of the corporate form of business? a. Corporations lack mutual agency. b. There is a greater degree of government control and supervision c. Ownership shares can be easily transferred. d. Owners' liability is limited.

(a)