10) Shareholders of a corporation: A) have limited liability for the corporation's debts. B) receive dividends from the corporation without havin C) can only be individuals. D) have a personal obligation for the corporation's debts. corporation without having to pay tax on the distribution. Costs that restore a plant 11) Costs that maintain a plant asset in its present conditions to working order or its prior condition should be A) expensed; expensed C) capitalized; expensed B) capitalized; capitalized D) expensed; capitalized 12) A company purchased inventory for $800 per unit. The company later sold one unit of the inventory of $2400. Under the perpetual inventory system, which accounts will be debited to record the sale? B) Cash, $2400; Cost of Goods Sold, $1 A) Cash, $2400; Inventory, $1600 D) Cash, $2400; Cost of Goods Sold, SE C) Cash, $2400; Inventory, $800 13) A company received a utility bill for $600 and decided to pay it next month due to a shortage of ca does this transaction affect the accounting equation? A) Add $600 to Accounts Receivable and subtract $600 from Retained Earnings. B) Subtract $600 from Cash and add $600 to Accounts Payable. C) Add $600 to Utilities Expense and add $600 to Cash. D) Add $600 to Accounts Payable and subtract $600 from Retained Earnings. 14) A construction company paid $81,000 cash for land used in the business. At the time of purchas had a list price of $89,000. When the balance sheet was prepared, the fair value of the land was what amount should the land be reported on the balance sheet of the company? A) $89,000 B) $85,000 C) $81,000 D) $8 15) Positive signs of a successful company as seen on the statement of cash flows do NOT include: A) operating activities are the largest source of cash. B) the sale of a majority of a company's plant assets. C) investments in property, plant and equipment. D) banks are willing to lend money to the company. 16) On August 1 of the current year, Trevor Beck received $9000 for legal services to be performe throughout the next six months. The adjusting entry on December 31 of the current year wou A) debit to Service Revenue of $1500. B) debit to Unearned Service Re C) credit to Service Revenue of $7500. D) credit to Uneared Service Ro