| | |

Question: 1. One advantage of the corporate form of organization is the A t

question
Expert Answer
Expert Answer

Solved Chegg Answers

1] D

A is incorrect – taxation is a disadvantage

B is incorrect – companies have limited liability

C is incorrect – double taxation is a disadvantage

D is correct

E is incorrect – companies are more complex to form

2] B

Security dealers buy and sell from their own inventory

Buyers and sellers matching is done by brokers

Physical trading floors are irrelevant

Security dealers operate in many markets, not exclusively in auction markets

They usually do not deal in unlisted stocks

3] E

net working capital = current assets – current liabilities

current liabilities = current assets – net working capital = 39,200 – 15,400 = 23,800

net fixed assets = current liabilities + long-term debt + equity – current assets

net fixed assets = 23,800 + 22,100 + 46,600 – 39,200 = 53,300

4] D

Addition to retained earnings = net income – dividend

net income = (revenue – cost – depreciation – interest) * (1 – tax rate)

net income = (513,000 – 406,800 – 43,800 – 11,200) * (1 – 33%) = 34,304

Addition to retained earnings = 34,304 – 4,500 = 29,804

Leave a Reply

Your email address will not be published. Required fields are marked *