A. Corporations pay federal income taxes but not state income taxes. 10. Which of the following statements concerning taxation is accurate?

A. Corporations pay federal income taxes but not state income taxes. 10. Which of the following statements concerning taxation is accurate? A. Corporations pay federal income taxes but not state income taxes. B. Corporations pay federal and state income taxes. C. Only the owners must pay taxes on corporate income. D. Corporations pay income taxes but their owners do not. ANS: B DIF: Easy OBJ: 13-01 NAT: AACSB Analytic | AICPA BB-Legal 11. The term deficit is used to refer to a debit balance in which of the following accounts of a corporation? A. Retained Earnings b. Treasury Stock c. Organizational Expenses d. Common Stock ANS: A DIF: Easy OBJ: 13-02 NAT: AACSB Analytic | AICPA FN-Measurement 12. Stockholders” equity a. is usually equal to cash on hand b. includes paid-in capital and liabilities c. includes retained earnings and paid-in capital d. is shown on the income statement ANS: C DIF: Easy OBJ: 13-02 NAT: AACSB Analytic | AICPA FN-Measurement 13. The two ways that a corpo