Which of These Statements Is True in Regard to the Sole

question 17

Multiple Choice

Which of these statements is true in regard to the sole proprietorship form of business

• A) You are required to share profits with others
• B) If you die, the business continues.
• C) If the company borrows money from a bank, you are not personally liable for the debt
• D) It makes financing more difficult

Identify and adjust net cash provided by (used in) financing activities.

Prepare the operating activities section of the statement of cash flows using the direct method.

Prepare a comprehensive statement of cash flows incorporating operating, investing, and financing activities.

Understand the adjustments for sales and income taxes to a cash basis on the statement of cash flows.

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Definitions:

State Law

Laws that are enacted and enforced by the individual states in a country, differing from federal or national laws.

Interstate Commerce

The buying, selling, or moving of products, services, or money across state lines, regulated by federal law.

Undue Burden

A legal standard used to determine whether a law or its enforcement is excessively burdensome or restrictive on an individual or group.

Parent Corporation

A corporation that owns a controlling interest of another corporation, called a subsidiary corporation.