What does double taxation mean?
A) Companies must pay taxes on their income, and then employees must pay taxes on their salaries and wages.
B) Companies have to pay both sales taxes and income taxes.
C) Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.
D) Suppliers tax their customers, and in turn these businesses tax the ultimate consumer.
E) Companies must pay taxes on corporate income and then additional taxes on distributions to profit stockholders.
Question 2 - During the year Comer, Inc, had 200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of 40,000. This reveals that it had sold all but ____ worth of the available goods.
A) 200,000
B) 160,000
C) 40,000
D) 20,000
E) 10,000
Question 3 - When Hewlett-Packard assumes that employees accept responsibility and work toward company goals and thus also achieve personal rewards, it is using
A) Theory M (for Maslow).
B) scientific management theory.
C) Herzberg's theory of reinforcement.
D) Theory X.
E) Theory Y.
Question 4 - Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are _____.
A) comprehensive, exhaustive, extensive, and independent
B) relevant, reliable, consistent, and comparable
C) cursory, intensive, unabridged, and superficial
D) circumstantial, inferential, presumptive, and provisional
Question 5 - The form of business organization that experiences double taxation is the
A) partnership.
B) corporation.
C) venture company.
D) syndicated partnership.
E) sole proprietorship.
Question 6 - Lutex Corporation began its accounting period with a merchandise inventory (beginning inventory) that cost 10,000. During the period, it purchased for resale merchandise with a retail value of 100,000. With purchase discounts, it paid only 80,000 for this merchandise. Thus, during this period, Lutex had ____ in goods available for sale.
A) 180,000
B) 70,000
C) 80,000
D) 90,000
E) 190,000
Question 7 - Theory Y is most suitable in a work situation in which workers are
A) in need of close supervision.
B) just beginning to learn their jobs.
C) highly motivated.
D) unskilled.
E) none of the above.
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