Chapter1-introduction to accounting

The context and purpose of financial reporting

1、单选题:
​Which groups of people are most likely to be interested in the financial statements of a sole trader?‎​1. Shareholders of the company‎​2. The business's bank manager‎​3. The tax authorities‎​4. Financial analysts‎
选项:
A: 1 and 2 only
B: 2 and 3 only
C: 2, 3 and 4 only
D: 1, 2 and 3 only
答案: 【 2 and 3 only

2、单选题:
‍Which of the following are advantages of trading as a limited liability company?‍‍1  Operating as a limited liability company makes raising finance easier because additional shares can be issued to raise additional cash.‍‍2  Operating as a limited liability company is more risky than operating as a sole trader because the shareholders of a business are liable for all the debts of the business whereas the sole trader is only liable for the debts up to the amount he has invested.‍‍‍
选项:
A: 1 only
B: 2 only
C: Both 1 and 2
D: Neither 1 or 2
答案: 【 1 only

3、单选题:
‏Which of the following are TRUE of partnerships?​‏1       The partners’ individual exposure to debt is limited

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