Answer 2
Option A: incorrect, as a sole proprietorship is run by only one individual
Option B: Correct, as a sole proprietor is solely liable for all liabilities of business.
Option C: Incorrect, as a sole proprietor is not taxed separately
Option D: Incorrect, as a sole proprietor do not have to pay business income taxes
Answer 3
The amount at which the company should record the building in its accounting records is the amount at which the company purchased the building i.e., at $160,000.
Option A $160,000 is the correct option.
Answer 4
Option C Going Concern Assumption, is the correct option as books are prepared are prepared on the basis of this assumption, that operations of the business will not cease in near future.
Answer 5
Total Assets = Equity + Liabilities
= 160,000 + 50,000
= $210,000
Option D is the correct option
2. Which of the following statements is true of a sole proprietorship? A) A sole proprietorship...
Question 11 (1 point) Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? full disclosure principle revenue recognition principle cost principle O expense recognition (matching) principle Question 12 (1 point) Which of the following terms is used when assuming a business will continue to operate in the foreseeable future? separate entity concept time period assumption O monetary measurement concept Ogoing concern assumption
1. Which of the following statements is true? A. An advantage to a sole proprietorship is the benefit from specialization. B. A disadvantage to a corporation is that individual investors have unlimited liability. C. A disadvantage to a sole proprietorship is that you must file corporate income tax. D. An advantage to a corporation is that it has unlimited life. 2. What is the primary goal of a corporation? A. Minimizing the market price. B. Maximizing current earnings per share....
1 Since cost is a reliable measure, the cost principle holds that the accounting records should continue reporting an asset at its historical cost over its useful life. True or False 2 Outside investors ordinarily use financial accounting information to decide whether or not to invest in a business. True or False 3 Under the going concern principle, accountants assume that the business will remain in operations long enough to use existing resources for their intended purpose. True or False...
1. The primary objective of financial accounting is: A. To serve the decision-making needs of internal users. B. To provide financial statements to help external users analyze an organizations C. To monitor and control company activities. D. To provide information on both the costs and benefits of looking after products and benefits of looking after products and services. 2. A CPA owns a large home and she has divided the second floor into two separate units: one her personal residence and the other rented out...
1) Which of the following is true of sole proprietorship? a)They form the majority of all businesses located in the United States. b)They are the most expensive type of business to create and maintain c)They account for the majority of the profits made in the United States d)They are entities which protect their owners from all types of liability. 2) Which of the following is true of general partnerships? a)General partnerships are taxable entities operated by a sole proprietor. b)General...
Question Completion Status: F. Should I buy into this company? QUESTION 27 Match the statements with the appropriate terms the statement describes. A. v A revenue not yet recognized; collected in advance for $1,200. A. Unearned Revenue Office supplies paid for and on hand that will be used in the next D. V period. A v Unrecorded interest on a notes payable of $180. B. Accrued Revenue C. Accrued Expense D. Insurance paid in advance. D. Prepaid Expense 8. v...
Which of the following statements is false? A. The going concern assumption underlies the preparation of financial statements. B. If a company is not a going concern, the classification of its assets and liabilities does not matter. C. The going concern assumption states that the business will continue in operation for the foreseeable future. D. The going concern assumption does not create a foundation for the accounting process.
1)Which one of the following is a correct statement concerning a sole proprietorship? Select one: A. It may be difficult to transfer the ownership of a sole proprietorship. B. A sole proprietorship is relatively difficult to form. C. The losses incurred by a sole proprietor are limited to the amount invested in the firm. D. The profits earned by a sole proprietorship are subject to double taxation. E. A sole proprietorship is more highly regulated than a corporation.
15) Accounting is an information and measurement system that does all of the following except: A) Identifies business activities. B) Records business activities. C) Communicates business activities. D) Eliminates the need for interpreting financial data. E) Helps people make better decisions. 16) External users of accounting information include all of the following except: A) Shareholders. B) Customers. C) Purchasing managers. D) Government regulators. E) Creditors. 17) A corporation is: A) A business legally separate from its owners. B) Controlled by...
Horace Johnson decides to start his CPA practice as a professional corporation. the corporation purchased an office building for $35000. the real estate agent said the building was worth $50000 in the current market. the corporation recorded the building as a $50000 asset because horace believes that is the real value of the building, whicj of the following concepts or principles of accounting is being violated. A. economic entity assumption B. going concern assumption C. cost principle D. monetary unit...