Problems with Corporations Include All of the Following EXCEPT

question 1

Multiple Choice

Problems with corporations include all of the following EXCEPT:

• A) the personal assets of owners are at risk.
• B) meetings have to be held periodically and annual reports have to be filed or the corporation will cease to exist legally.
• C) income is taxed to the corporation and is taxed again when it is distributed to owners.
• D) accountants and lawyers must be retained on a continuous basis to ensure the corporation is functioning properly.
• E) corporations are very expensive to form initially.

Recognize the implications of uncertain tax positions on financial reporting.

Identify the requirements for the disclosure of income tax information in the notes to financial statements.

Evaluate the effects of accounting choices and changes in tax laws on inter-firm and intra-firm comparisons.

Understand the specific criteria established by GAAP for the treatment of leases.

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Definitions:

Deviance

Behaviors or actions that violate societal norms and expectations.

Positivist Sociologists

Sociologists who believe in a scientific approach to understanding society, focusing on observable data and facts to form theories.

Deviant Behavior

Conduct that deviates from what is considered acceptable by society or the norms of a specific group.

Nondeviants

Individuals who conform to established societal norms and standards, often considered typical or conventional members of a society.