Multiple Choice 21. Which of the following forms of business organizations exists as a legal entity for tax purposes? A) A sole proprietorship B) A partnership C) A corporation D) A labor union 22. Which of the following is a correct statement of the accounting equation in economic terms? A) Economic resources = operating assets + financial assets B) Economic resources = creditor financing + owner financing C) Economic resources creditor financing - owner financing D) Creditor financing investing + operating = 23. What are the obligations or debts that a business must pay in cash or in goods and services at some future time because of past transactions or events called and how are they reported? A) Assets on the balance sheet 28. B) Stockholders' equity on the balance sheet C) Dividends on the statement of retained earnings D) Liabilities on the balance sheet 24. What are the economics resources of a business that can be expressed in monetary and how are they reported? A) Assets on the balance sheet B) Stockholders' equity on the balance sheet C) Dividends on the statement of retained earnings D) Liabilities on the balance sheet 25. The accounting equation states: A) Assets + Liabilities = Stockholders' Equity B) Assets = Liabilities - Stockholders' Equity C) Assets = Liabilities + Stockholders' Equity D) Assets + Stockholders' Equity = Liabilities alloos.co 26. Which of the following is correct? A) Ownership is an essential test for an asset. B) An example of an asset is notes payable. C) The key characteristic of an asset is that it represents a probable future economic benefit owned or controlled by the entity. D) Liabilities represent the interest of the owners in the assets of an entity. 27. The obligations that an entity must pay in money or services at some time in the future because of past transactions or events are called? A) Liabilities B) Expenses C) Stockholders' equity D) Cost principle Which of the following is an example of a liability? A) Supplies B) Accounts receivable C) Wages owed to employees for work already performed D) Prepaid advertising

21. Which of the following forms of business organizations exists as a legal entity for tax purposes? A) A sole proprietorship B) A partnership C) A corporation D) A labor union 22. Which of the following is a correct statement of the accounting equation in economic terms? A) Economic resources = operating assets + financial assets B) Economic resources = croditor financing + owner financing C) Economic resources = creditor financing - owner financing D) Creditor financing = investing + operating 23. What are the obligations or debts that a business must pay in cash or in goods and services at sorre future time because of past transactions or events called and how are they reported? A) Assets on the balance sheet B) Stockholders' equity on the balance sheet C) Dividends on the statement of retained eamings D) Liabilities on the balance sheet 24. What are the economics resources of a business that can be expressed in monetary and how are they reported? A) Assets on the balance sheot B) Stockholders' equity on the balance sheet C) Dividends on the statement of ratained eamings D) Liabilitios on the balance sheet 25. The accourting equation states: A) Assets + Liabilities = Stockholders' Equity B) Assets = Liabilities - Stockholders' Equity C) Assets = Liabilities + Stockholders' Equity D) Assets + Stockholders' Equity = Liabilities 26. Which of the following is correct? A) Ownership is an essential test for an asset. B) An example of an asset is notes payable. C) The key characteristic of an asset is that it represents a probable future economic benefit owned or controlled by the entity. D) Llabilities reprosent the interest of the owners in the assets of an entity. 27. The obligations that an entity must pay in money or services at some time in the future because of past transactions or events are called? A) Liabiulities B) Expenses C) Stockholders' equity D) Cost principle 28. Which of the following is an example of a liability? A) Supplies B) Accounts receivable C) Wages owed to employees for work already performed D) Prepaid advertising