1. All of the following increase owners equity except forwhich one?

a. investments by owners

b. revenues

c. gains

d. acquisitions of assets by incurring liabilities

2. Which of the following statements is true?

a. Tangible assets will be consumed in a year or less.

b. Tangible assets have physical substance.

c. Tangible assets will be consumed in over a year.

d. Tangible assets lack physical substance.

3. Owners have no personal liability under which legal business structure?

a. a corporation

b. a partnership

c. a sole proprietorship

d. There is liability in every legal business structure.

4. Which financial statement shows the financial position of the company?

a. balance sheet

b. statement of cash flows

c. income statement Solution

d. statement of owners equity