1. Sole proprietorships and partnerships are taxable entities. True False

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2. Internal users of accounting information include a company’s investors (or stockholders). True False

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3. Interest expense would be classified under operating activities. True False

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4. The balance sheet reports assets and claims to those assets at a specific point in time. True False

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5. The notes to the financial statements are not required. True False

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6. The Statement of Cash Flows reports only cash flows from operations. True False

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7. Only Certified Public Accountants may perform audits. True False

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8. Easy transfer of ownership is a characteristic of which form of business organization? Sole proprietorship Partnership Corporation All of the above

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9. In which forms of business organization are the owners personally liable for all the debts of the business? Sole proprietorship and corporation Sole proprietorship and partnerships Partnership and corporation All of them

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10. Internal users want answers to which of the following questions? What price for our product will maximize the company’s net income? Which product line is most profitable? Is cash sufficient