acct 211 midterm #1 questions with complete solutions

acct 211 midterm #1 questions with complete solutionsWhat section of a cash flow statement shows the cash spent on new equipment during the past accounting period? - correct answer The investing section Corporations generally receive more favorable tax treatment than sole proprietorships and partnerships. - correct answer FALSE In which forms of business organization are the owners personally liable for all the debts of the business? - correct answer Sole proprietorships and partnerships Which of the following is not an external user of accounting data? - correct answer chief financial officer Which of the following is required as a result of SOX? - correct answer Public companies must present audited financial statements. Which of the following is not one of the three primary business activities? - correct answer Advertising In terms of the principal types of business activities, paying salaries expense is an example of - correct answer operating activities. The financial statements for Harold Corporation contained the following information: Accounts receivable $ 5,000 Sales revenue 75,000 Cash 15,000 Salaries and wages expense 20,000 Rent expense 10,000 How much was Harold's net income? - correct answer Net income= Revenue - Expenses $45,000