WILEY PLUS CH. 1-4 QUIZ ANSWERS
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025
What is one benefit that corporations offer over sole proprietorships and
partnerships?
A) Limited liability for shareholders
B) Less access to capital
C) Most widely used business structure
D) Ownership is more difficult to transfer
✔ Answer: A) Limited liability for shareholders
Which business structure allows for ownership to be easily transferred?
A) Sole proprietorship
B) Partnership
C) Corporation
D) All of the above
✔ Answer: C) Corporation
Who among the following is considered an internal user of accounting
information?
A) Customers
B) Chief Financial Officer
C) Labor unions
D) Government analysts
✔ Answer: B) Chief Financial Officer
Interest payments and earnings from interest are classified as:
A) Operating activities
B) Financing activities
C) Delivery-related activities
, D) Investing activities
✔ Answer: A) Operating activities
Paying out dividends to shareholders is an example of which type of activity?
A) Financing activity
B) Investing activity
C) Delivery activity
D) Operating activity
✔ Answer: A) Financing activity
What are items owned by a company called?
A) Stockholders’ equity
B) Revenues
C) Assets
D) Liabilities
✔ Answer: C) Assets
Which of the following is not included on the retained earnings statement?
A) Retained earnings at the start of the period
B) Net income for the period
C) Income from services
D) Dividend distributions
✔ Answer: C) Income from services
Using the data provided, what is Harold Corporation’s net income?
Accounts receivable: $5,000
Sales revenue: $75,000
Cash: $15,000
Salaries and wages expense: $20,000
Rent expense: $10,000
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025
What is one benefit that corporations offer over sole proprietorships and
partnerships?
A) Limited liability for shareholders
B) Less access to capital
C) Most widely used business structure
D) Ownership is more difficult to transfer
✔ Answer: A) Limited liability for shareholders
Which business structure allows for ownership to be easily transferred?
A) Sole proprietorship
B) Partnership
C) Corporation
D) All of the above
✔ Answer: C) Corporation
Who among the following is considered an internal user of accounting
information?
A) Customers
B) Chief Financial Officer
C) Labor unions
D) Government analysts
✔ Answer: B) Chief Financial Officer
Interest payments and earnings from interest are classified as:
A) Operating activities
B) Financing activities
C) Delivery-related activities
, D) Investing activities
✔ Answer: A) Operating activities
Paying out dividends to shareholders is an example of which type of activity?
A) Financing activity
B) Investing activity
C) Delivery activity
D) Operating activity
✔ Answer: A) Financing activity
What are items owned by a company called?
A) Stockholders’ equity
B) Revenues
C) Assets
D) Liabilities
✔ Answer: C) Assets
Which of the following is not included on the retained earnings statement?
A) Retained earnings at the start of the period
B) Net income for the period
C) Income from services
D) Dividend distributions
✔ Answer: C) Income from services
Using the data provided, what is Harold Corporation’s net income?
Accounts receivable: $5,000
Sales revenue: $75,000
Cash: $15,000
Salaries and wages expense: $20,000
Rent expense: $10,000
