One way of stating the accounting equation is:
Assets + Liabilities = Stockholders’ Equity.
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True
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False
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A business organized as a corporation
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requires
that stockholders be personally liable for the debts of the business.
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is
owned by its stockholders.
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has tax
advantages over a proprietorship or partnership.
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is not
a separate legal entity in most states.
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Proprietorships in the United States generate
more revenue than the other two forms of business enterprise.
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True
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False
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Which measure would a long-term creditor be
least interested in reviewing?
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Solvency
measure
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Debt to
assets ratio
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Current
ratio
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Free
cash flow
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