1. Consider different types of business organizations. Two features of a corporation are:

a. liability is unlimited, and owners are partners

b. owners are called shareholders, and large amounts of capital can be raised

c. owners are called members, and it is has a flexible management structure

d. liability is unlimited, and owners are partners

2. Which two types of accounts both increase with a credit?

a. expenses and assets

b. gains and stockholders equity

c. expenses and liabilities

3. One way to increase the current ratio is by:

a. buying treasury stock with cash

b. issuing common stock for cash

c. collecting cash on accounts receivable

d. buying equipment with cash

4. The concept of __________ says that accounting information should be objective and not subject to bias.

a. consensus

b. reliability

c. conservatism

d. relevance

d. gains and assets