Explore BrainMass

Explore BrainMass

    Accounting Principles and Practices

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. A profit-making business that is a separate legal entity and in which ownership is divided into shares of stock is known as a:
    A. sole proprietorship
    B. single proprietorship
    C. partnership
    D. corporation

    2. The properties owned by a business enterprise are called:
    A. assets
    B. liabilities
    C. the accounting equation
    D. owner's equity

    3. A list of assets, liabilities, and owner's equity of a business entity as of a specific date is:
    A. a balance sheet
    B. an income statement
    C. a statement of owner's equity
    D. a statement of cash flows

    4. If total assets increased $20,000 during a period of time and total liabilities increased $12,000 during the same period, the amount and direction (increase or decrease) of the period's change in owner's equity is:
    A. $32,000 increase
    B. $32,000 decrease
    C. $8,000 increase
    D. $8,000 decrease

    5. If revenue was $45,000, expenses were $37,500, and the owner's withdrawals were $10,000, the amount of net income or net loss would be:
    A. $45,000 net income
    B. $7,500 net income
    C. $37,500 net loss
    D. $2,500 net loss

    © BrainMass Inc. brainmass.com June 3, 2020, 6:31 pm ad1c9bdddf
    https://brainmass.com/business/accounting/accounting-principles-practices-63601

    Solution Preview

    1. D
    A corporation, organized in accordance with state or federal statutes, is a separate legal entity in which ownership is divided into shared of stock. A sole proprietorship, sometimes called a single proprietorship, is an unincorporated business enterprise owned by one individual. A partnership is an unincorporated business enterprise owned by two or more individuals.

    2. A
    The properties owned by a business enterprise ...

    Solution Summary

    This solution looks at accounting principles and practices: proprietorship, properties, and financial statements.

    $2.19

    ADVERTISEMENT