Actg 210 Quiz 1 Solution

Actg 210 Quiz 1 Solution - 1. Elijah Fong and Ava Logan own...

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1. Elijah Fong and Ava Logan own Financial Services, a financial services provider. Neither Fong nor Logan has personal responsibility for the debts of Financial Services. Which kind of legal form is this business entity? A) Sole proprietorship. B) Partnership C) Corporation 2. At the end of last year, the company's assets totaled $860,000 and its liabilities totaled $740,000. During the current year, the company's total assets increased by $58,000 and its total liabilities decreased by $24,000. At the end of the current year, stockholders' equity was: A) $120,000 B) $82,000 C) $154,000 D) $202,000 3. The firm purchases $10,000 lab equipment by paying cash. This transaction would A) Increase liabilities. B) Decrease liabilities. C) Not affect liabilities. D) Decrease stockholders' equity. E) None of the above is correct. 4. For each transaction recorded in an accounting system, the two basic equalities that must be maintained at all times are A) (1) Assets = Liabilities + Stockholders’ Equity. (2) Net Income = Revenues +
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This note was uploaded on 01/31/2011 for the course ACCOUNTING 210 taught by Professor Xiaoyanwen during the Spring '10 term at UChicago.

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Actg 210 Quiz 1 Solution - 1. Elijah Fong and Ava Logan own...

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