Question

1. The limited liability company may elect to be manager-managed rather than member-managed, which means that only authorized members may legally bind the corporation. a. True b. False 2. A corporation is a separate entity for accounting purposes but not for legal purposes. a. True b. False — 3. When compared to a corporation, one of the major disadvantages of the partnership is its limited life. a. True b. False _ 4. Each partner may withdraw the assets he or she contributed to the partnership at any time. a. True b. False 5. Twenty percent of all businesses in the United States are corporations, and they account for 80% of the total business dollars generated. a. True b. False 6. When common stock is issued in exchange for land, the land should be recorded in the accounts at the par value of the stock issued. a. True b. False 7. When a corporation issues stock at a premium, it reports the premium as an Other income item on the income statement. a. True b. False 8. A new partner contributes accounts receivable to a partnership, which appears in the ledger of his sole proprietorship at $20,500, and there was an allowance for doubtful accounts of $750. If $600 of the accounts receivable are completely worthless, the partnership Accounts Receivable should be debited for $19,900. a. True b. False 9. Cash dividends become a liability to a corporation on the date of record. a. True b. False

Answer 1

Answer (1) TRUE Answer (11) Option (D) Answer (21) Equally Answer (2) Answer (12) Answer (22) Distribution of remaining cash to partner FALSE Option (D) Answer (3) TRUE Answer (13) Option (D) Answer (23) Death of a partner Answer (4) TRUE Answer (14) Option (D) Answer (24) Corporation Answer (15) Option (D) Answer (25) Public Corporation Answer (5) TRUE Answer (6) TRUE Answer (16) Unlimited Liability Answer (26) By laws Answer (7) FALSE Answer (27) Private Corporation. Answer (17) Partnership agreement Answer (8) TRUE Answer (28) Article of association Answer (18) Partnership Answer (9) TRUE Answer (29) Limited liability Answer (19) Mutual agency Answer (10) TRUE Answer (30) Board of Directors Answer (20) Liquidation