6:32 Blackboard 1. The proprietorship form of business organization must have at least two owners in most states. a. generally receives favorable tax treatment relative to a corporation. b. combines the records of the business with the C. personal records of the owner. is classified as a separate legal entity. d. A business organized as a corporation 2. is not a separate legal entity in most states. a. b. requires that stockholders be personally liable for the debts of the business. is owned by its stockholders. C. has tax advantages over a proprietorship or partnership. d. The partnership form of business organization 3. is a separate legal entity. a. is a common form of organization for service- type businesses. b. enjoys an unlimited life. C. has limited liability. d. 4. External users of accounting information, like the Internal Revenue Service, are most commonly known as taxing authorities. a. labor unions. b. customers. C. regulatory agencies. d. Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX)? 5. Act The for calls increased oversight a. responsibilities for boards of directors. b. The Act has resulted in increased penalties for financial fraud by top management. The Act calls for decreased independence of outside auditors reviewing corporate financial C. statements. d. The Act is meant to decrease the likelihood of unethical corporate behavior. 6:32 Blackboard Which of the following is not a step for solving an ethical dilemma? 6. Identifying the alternatives and weighing the impact of each alternative on various stakeholders. a. Certifying the ethical accuracy of the financial information. b. Identifying and analyzing the principal elements in the situation. C. Recognizing the ethical situation and issues involved. d. 7. The best definition of assets is the cash owned by the company. a. belonging to the b. collections of resources company and the claims on these resources. owners' investment in the business. C. d. resources belonging to a company that have future benefit to the company. 8. Debts and obligations of a business are referred to as assets. a. b. equities. liabilities. C. d. expenses. 9. Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $245,000 from customers. What was Jackson's net cash provided by operating activities? $95,000 a. $35,000 b. $110,000 C. $89,000 d.