The board of directors carries

Quiz 5

Question 1

The board of directors carries out the day-to-day operations of the business. True

False

Question 2

Stockholders elect the board of directors who then appoint the officers of a corporation.

True

False

Question 3

Limited liability can be viewed as both an advantage and a disadvantage. True

False

Question 4

Corporate earnings are subject to double taxation.

True

False

Question 5

The par value of stock is an arbitrary amount assigned to each share of stock. True

False

Question 6

Which of the following user groups will use managerial accounting information for decision-making purposes?

a. customers

b. lenders

c. employees

d. stockholders

Question 7

Management accounting reports are

a. prepared using the double-entry a system of accounting

b. prepared periodically

c. based on generally accepted accounting principles

d. driven by user's needs

Question 8

Par value of a stock is which of the following:

a. its net worth in the market

b. its value less equity

c. its assumed value

d. no answer is correct

Question 9

Additional paid in capital:

a. is a non-valid account

b. has no meaning

c. does not imply total stock value

d. no answer is correct

Question 10

Two types of stock are:

a. preferred and common

b. presumed and casual

c. determined and robust

d. no answer is correct