A profit-making business operating as a separate legal entity and in which ownership is divided into shares of stock is known as a

• proprietorship.

• service business.

• partnership.

• corporation.

The resources owned by a business are called:

• assets.

• liabilities.

• the accounting equation.

• owners equity.

On August 25, Gallatin Repair Service extended an offer of $125,000 for land that had been priced for sale at $150,000. On September 3, Gallatin Repair Service accepted the sellers counteroffer of $137,000. On October 20, the land was assessed at a value of 598,000 for property tax purposes. On December 4, Gallatin Repair Service was offered $160,000 for the land by a national retail chain. At what value should the land be recorded in Gallatin Repair Service's records?

• 125,000

• 150,000

• 137,000

• 98,000

If total assets increased $20,000 during a period and total liabilities increased $12,000 during the same period, the amount and direction (increase or decrease) of the change in owner's equity for that period is a(n):

• $32,000 increase.

• $32,000 decrease.

• $8,000 increase.

• $58,000 decrease.

If revenue was $45,000, expenses were $37,500, and the dividend were $10,000, the amount of net income or net loss would be:

• $45,000 net income.

• $7,500 net income.

• $37,500 net loss.

• $2,500 net loss.

When a corporation received investment of $25,000 from stockholders in exchange for common stock, which accounting elements are affected?

• Asset (Cash) increases by $25,000; Common Stock increases by $25,000.

• Asset (Cash) decreased by $25,000; Common Stock increases by $25,000.

• Asset (Cash) increases by $25,000; Common Stock decreased by $25,000.

• Asset (Cash) decreased by $25,000; Common Stock decreased by $25,000.

When a corporation paid creditors on account, $3,750, which accounting elements are affected?

• Asset (Cash) increased by $3,750; Liability (Accounts Payable) increased by $3,750

• Asset (Cash) decreased by $3,750; Liability (Accounts Payable) increased by $3,750

• Asset (Cash) decreased by $3,750; Liability (Accounts Payable) decreased by $3,750

• Asset (Cash) increased by $3,750; Liability (Accounts Payable) decreased by $3,750

When a corporation received cash from customers on account, $11,300, which accounting elements are affected?

• Asset (Cash) increased by $11,300; Asset (Accounts Receivable) increased by $11,300)

• Asset (Cash) decreased by $11,300; Asset (Accounts Receivable) increased by $11,300

• Asset (Cash) decreased by $11,300; Asset (Accounts Receivable) decreased by $11,300

• Asset (Cash) increased by $11,300; Asset (Accounts Receivable) decreased by $11,300

Purchased supplies on account $1,000

• Asset (Supplies) increased by $1,000; Asset (Cash) increased by $1,000

• Asset (Supplies) Increased by $1,000; Liability (Accounts Payable) increased by $1,000

• Asset (Supplies) increased by $1,000; Asset (Cash) increased by $1,000

• Asset (Supplies) increased by $1,000; Liability (Accounts Payable) decreased by $1,000

Billed customers for fees earned $19,000

• Assets (Accounts Receivable) increased $19,000; Revenues (Fees Earned) decreased by $19,000

• Assets (Accounts Receivable) decreased $19,000; Revenues (Fees Earned) increased by $19,000

• Assets (Accounts Receivable) increased $19,000; Revenues (Fees Earned) increased by $19,000

• Assets (Accounts Receivable) decreased $19,000; Revenues (Fees Earned) decreased by $19,000