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2. Which of the following statements is true of a sole proprietorship? A) A sole proprietorship joins two or more individuals as co-owners. B) The

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2. Which of the following statements is true of a sole proprietorship? A) A sole proprietorship joins two or more individuals as co-owners. B) The sole proprietor is personally liable for the liabilities of the business. C) A sole proprietorship is taxed separately from the owner. D) A sole proprietorship has to pay business income taxes 3. Ten years ago a company purchased a building for $160,000. At that time, the company felt that the building was worth $185.000. The current market value of the building is $460,000. The building has been assessed at $435,000 for property tax purposes. At which amount should the company record the building in its accounting records? A) $160,000 B) $185,000 C) $435.000 D) $460.000 4. As per the the entity will remain in operation for the foreseeable future. A) economic entity concept B) monetary unit assumption C) going concern assumption D)cost principle 5. The equity of Alliance Company is $160,000 and the total liabilities are $50.000. The total assets are A) $320,000 B) $100.000 C) $110.000 D) $210,000 - 3. Ten years ago a company purchased a building for $160,000. At that time, the company felt that the building was worth $185,000. The current market value of the building is $460,000. The building has been assessed at $435,000 for property tax purposes. At which amount should the company record the building in its accounting records? A) $160,000 B) $185,000 C) $435,000 D) $460,000 4. As per the the entity will remain in operation for the foreseeable future. A) economic entity concept B) monetary unit assumption C) going concern assumption Dcost principle 5. The equity of Alliance Company is $160,000 and the total liabilities are $50,000. The total assets are A) $320.000 B) $100.000 C) $110,000 D) $210,000

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