Adepartment store uses a perpetual inventory system. at year-end, it shows a balance in the merchandise inventory account of $2 million. assuming that the inventory records have been maintained properly, a year-end physical inventory a : will confirm that a perpetual inventory system was used correctly. b : will most likely indicate more than $2 million in merchandise on hand. c : will show that a periodic inventory system should be implemented. d : will most likely indicate less than $2 million in merchandise on hand due to unrecorded handling and related losses.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business. true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.