Question 1: (True / False)

In a defined contribution plan the contributions made to the plan by the employer (and the employee) are fluid (able to be adjusted). False

Question 2: (True / False)

Pension fund earnings are exempt from taxation (while inside the pension fund), these investments compound at before tax rates

Question 3: (Multiple Choice)

Unlimited Liability means

1)When you own your business you are responsible for all the business debts

2)You are only liable for money you invest in the business

3)As a franchise your franchisor is responsible for the debts of the franchise

4)You are liable for whatever advertising promises your firm makes.

Question 4: True / False

A merger is the joining of resources of two companies, whereas an acquisition is a buyout of one firm by the other. The new company concerns itself with merging of resources

Question 5: Essay

Do you agree or disagree with the following statement.Support your position.

The costs of complying with the myriad pension and tax-related regulations can be rather steep.Firms can face stiff penalties for over funding.Anti-discrimination funding requirements are such that both highly compensated individuals, who are typically older and value saving, and less-well compensated employees, who often prefer compensation to saving, must be included in the plan for the pension trust to qualify for tax-free accumulation.

Question 6:Short-Answer

What are the principals behind Section 251 tax policy?

Question 7: Short answer

What is a consolidated tax return?What are its advantages and disadvantages?

Question 8: Fill in the blank

____________ income is the change in equity of a company during a period form transactions, other events, and circumstances related to non-owner sources.

Question 9: Fill in the blank

The ____________ method of inventory generally results in the matching of current costs with current revenues and therefore produces higher-quality earning.

Question 10: Short answer

How is a common-size income statement prepared?

Question 11: Short answer

How are sales reported on the income statement?

Question 12: Short answer

Define the word amortization?What is its common use?