Question Part 1 of 1 of 20 5.0/ 5.0 Points If total liabi

Question Part 1 of 1 of 20 5.0/ 5.0 Points If total liabilities are $18000 and owner’s equity is $21000 the total assets must be __________. A. $39000 B. $5000 C. $20000 D. $17000 Question 2 of 20 5.0/ 5.0 Points Which of the following is a characteristic of a sole proprietorship? A. business owned by more than one person B. easy to form C. each stockholder acts as an owner of the company D. can continue indefinitely Question 3 of 20 5.0/ 5.0 Points Which of the following transactions would cause one asset to increase and another asset to decrease? A. The owner invested cash in the business. B. The business paid a creditor. C. The business incurred an expense on credit. D. The business bought supplies for cash. Question 4 of 20 5.0/ 5.0 Points Mary invested cash in her new business. What effect will this have? A. increase an asset and increase a liability B. decrease an asset and increase a liability C. increase an asset and increase owner’s equity D. increase an asset and decrease owner’s equity Question 5 of 20 5.0/ 5.0 Points Which of the following will be recorded in the owner’s equity column as an increase? A. an exchange of assets B. the purchase of an asset on credit C. an investment by the owner D. a withdrawal by the owner Question 6 of 20 5.0/ 5.0 Points The purpose of the accounting process is to provide financial information about __________. A. sole proprietorships B. small businesses C. large corporations D. All of these answers are correct. Question 7 of 20 5.0/ 5.0 Points The balance sheet contains __________. A. liabilities expenses and capital B. assets liabilities and revenues C. expenses assets and cash D. assets liabilities and owner’s equity Question 8 of 20 5.0/ 5.0 Points The purchase of supplies for cash would affect which account category? A. assets B. liabilities C. capital D. expense Question 9 of 20 5.0/ 5.0 Points A partnership is a business that is __________. A. easy to form B. ends with the death of a partner C. owned by more than one person D. All of these answers are correct. 0 of 20 5.0/ 5.0 Points Bonnie’s Baskets purchases $4000 worth of office equipment on account. This causes A. Cash and Capital to decrease. B. Office Equipment and Accounts Payable to increase. C. Office Equipment to decrease and Accounts Payable to increase. D. Accounts Payable to increase and Capital to decrease. 1 of 20 5.0/ 5.0 Points A corporation __________. A. can continue indefinitely B. is owned by stockholders C. has limited risk to stockholders D. All of these answers are correct. 2 of 20 5.0/ 5.0 Points The type of business organization that can continue indefinitely is known as a __________. A. sole proprietorship B. partnership C. corporation D. None of the above answers are correct. 3 of 20 5.0/ 5.0 Points Which of the following would result if the business purchased supplies on credit? A. Supplies would increase and Cash would decrease. B. Supplies would increase and Capital would increase. C. Supplies would increase and Accounts Payable would increase. D. The purchase of supplies is not a business transaction. 4 of 20 5.0/ 5.0 Points If total liabilities are $1000 and total assets are $8000 owner’s equity must be __________. A. $7000 B. $3000 C. $10000 D. $13000 5 of 20 5.0/ 5.0 Points Katie’s Vegetarian Restaurant with total assets of $90000 borrows $15000 from the bank. Which of the following is a true statement upon borrowing the money? A. Total assets are now $105000. B. Total assets are now $80000. C. Total assets are now $15000. D. Total assets are now $75000. 6 of 20 5.0/ 5.0 Points If total assets are $30000 and total liabilities are $18000 Capital must equal __________. A. $12000 B. $28000 C. $8000 D. $20000 7 of 20 5.0/ 5.0 Points How does the purchase of office equipment on account affect the accounting equation? A. assets increase; liabilities decrease B. assets increase; owner’s equity increases C. assets increase; liabilities increase D. liabilities increase; owner’s equity decreases 8 of 20 5.0/ 5.0 Points Accounting provides information to __________. A. managers B. government C. investors D. All of these answers are correct. 9 of 20 5.0/ 5.0 Points Assets are equal to __________. A. liabilities + owner’s equity B. liabilities – owner’s equity C. liabilities – revenues D. revenues expenses Question 20 of 20 5.0/ 5.0 Points Strum Hardware has total assets of $50000. What are the total assets if new equipment is purchased for $10000 cash? A. $45000 B. $50000 C. $55000 D. $60000