Which of the following is the primary element that distinguishes accounting for corporations from accounting for partnerships? a. The corporation draws a sharper distinction in accounting for sources of capital. b. The entity theory relates primarily to the other forms of business organization. c. In a corporation, retained earnings may be reduced only by the declaration of dividends. d. Generally accepted accounting principles apply to corporations but have relatively little applicability to other forms of business organizations.
Which of the following is the primary element that distinguishes accounting for corporations from accounting for partnerships? a. The corporation draws a sharper distinction in accounting for sources of capital. b. The entity theory relates primarily to the other forms of business organization. c. In a corporation, retained earnings may be reduced only by the declaration of dividends. d. Generally accepted accounting principles apply to corporations but have relatively little applicability to other forms of business organizations.
Chapter8: Consolidated Tax Returns
Section: Chapter Questions
Problem 1BCRQ
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Which of the following is the primary element that distinguishes accounting for corporations from accounting for partnerships?
a. The corporation draws a sharper distinction in accounting for sources of capital.
b. The entity theory relates primarily to the other forms of business organization.
c. In a corporation, retained earnings may be reduced only by the declaration of dividends.
d. Generally accepted accounting principles apply to corporations but have relatively little applicability to other forms of business organizations.
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