1. Question 1Which of the following is a characteristic of a limited-liability company (LLC)?
2. An LLC's life is terminated at any member's choice or death.
3. Each member of an LLC is liable only for his or her own actions.
4. An LLC must have more than five members.
5. The earnings of an LLC are subject to double taxation.

5 points

Question 2

1. Which of the following organizations requires publicly owned companies to be audited by independent accountants (CPAs)?
2. Securities and Exchange Commission (SEC)
3. Public Company Accounting Oversight Board (PCAOB)
4. Financial Accounting Standards Board (FASB)
5. American Institute of Certified Public Accountants (AICPA)

5 points

Question 3

1. The Public Company Accounting Oversight Board (PCAOB) was created __________.
2. by the Sarbanes-Oxley Act (SOX)
3. to perform audits of public companies
4. to make restitution to investors who were defrauded by the issuance of fraudulent financial reports
5. to require auditors to take responsibility for the accuracy and completeness of financial reports from firms they audit

5 points

Question 4

1. Which of the following statements is TRUE of a sole proprietorship?
2. A sole proprietorship joins two or more individuals as co-owners.
3. The sole proprietor is personally liable for the liabilities of the business.
4. A sole proprietorship is taxed separately from the owner.
5. A sole proprietorship has to pay business income taxes.

5 points

Question 5

1. Transactions during the first year of operations are provided below.
2. The owner, Sharon McCoy, contributed $10,000 cash in exchange for capital.
3. Paid $1,100 cash for equipment to be used for plumbing repairs.
4. Borrowed $12,000 from a local bank and deposited the money in the checking account.
5. Paid $300 rent for the year.
6. Purchased $200 of office supplies by cash.
7. Completed a plumbing repair project for a local lawyer and received $3,200 cash.
9. Calculate the amount of total liabilities at the end of the first year.
10. $12,000
11. $10,000
12. $20,900
13. $3,200

5 points

Question 6

1. The earnings of a sole proprietorship are __________.
2. combined with the personal income of the proprietor
3. not combined with the proprietor's personal income
4. subject to double taxation
5. handled similarly to that of a corporation

5 points

Question 7

1. Hollywood Talent Services is a sole proprietorship operated by Phil Morris. The net income of Hollywood Talent Services is $23,000 for the year. The beginning and ending Morris, Capital account was $33,000 and $50,000, respectively. During the year, there were no new capital contributions. Calculate the amount of the owner's withdrawals for the year.
2. $16,000
3. $6,000
4. $10,000
5. $9,000

5 points

Question 8

1. The Sarbanes-Oxley Act (SOX) __________.
2. requires independent accountants to take responsibility for the accuracy and completeness of the financial reports
3. created the SEC
4. ensures that financial scandals will no longer occur
5. requires companies to take responsibility for the accuracy and completeness of their financial reports

5 points

Question 9

1. Dynamic Production Services started the year with total assets of $130,000 and total liabilities of $50,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $100,000 and $60,000, respectively. During the year, there were no new capital contributions, and the owner withdrew $45,000. Calculate Dynamic's net income for the year.
2. $40,000
3. $100,000
4. $60,000
5. $130,000

5 points

Question 10

1. Spring Company has assets and equity that amount to $260,000 and $70,000, respectively. Liabilities total __________.
2. $70,000
3. $190,000
4. $260,000
5. $330,000

5 points

Question 11

1. The equity of Alliance Company is $100,000 and the total liabilities are $10,000. The total assets are __________.
2. $200,000
3. $20,000
4. $90,000
5. $110,000

5 points

Question 12

1. GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to __________.
2. Globally Accepted Accounting Policies
3. Government Approved Accounting Principles
4. Generally Accredited Accounting Policies
5. Generally Accepted Accounting Principles

5 points

Question 13

1. Lisa Smith decided to start her CPA practice as a sole proprietorship. The business purchased an office building for $35,000. The real estate agent said the building was worth $50,000 in the current market. The business recorded the building as a $50,000 asset because Lisa believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated?
2. Cost principle
3. Economic entity assumption
4. Monetary unit assumption
5. Going concern assumption

5 points

Question 14

1. The field of accounting that focuses on providing information for external decision makers is __________.
2. managerial accounting
3. financial accounting
4. cost accounting
5. nonmonetary accounting

5 points

Question 15

1. Which of the follow statements regarding the primary objective of financial reporting is correct?
2. The primary objective of financial reporting is to provide information useful for the acquisition of long-term assets.
3. Information that is faithfully represented is complete, neutral, and free from error.
4. Relevant information ensures that users of the information will make the correct decisions.
5. To be useful, information must follow the Generally Accepted Accounting Principles, which are created and governed by the Securities and Exchange Commission.

5 points

Question 16

1. Mulberry Company collected $7,000 from one of its customers, the amount owed from the previous month. How does this affect the accounting equation for Mulberry?
2. assets increase by $7,000; liabilities decrease by $7,000
3. assets increase by $7,000; assets decrease by $7,000
4. assets increase by $7,000; liabilities increase by $7,000
5. assets increase by $7,000; equity increases by $7,000

5 points

Question 17

1. Nick's Landscaping Services incurred $500 as a repair expense and promised to pay the repair company within 30 days. Which of the following accounts will increase as a result of this transaction?
2. Accounts Receivable
3. Cash
4. Accounts Payable
5. Nick, Capital

5 points

Question 18

1. Maxwell Plumbing Services earned $500 by completing a job for Smith Company. The $500 earned by Maxwell Plumbing Services is its __________.
2. revenue
3. expense
4. gain
5. debt

5 points

Question 19

1. __________ are professional accountants who serve the general public, not one particular company.
2. Certified public accountants
3. Financial managers
4. Internal auditors
5. Controllers

5 points

Question 20

1. Which of the following is the correct accounting equation?
2. Assets + Liabilities = Equity
3. Assets = Liabilities + Equity
4. Assets + Revenues = Equity
5. Assets + Revenues = Liabilities + Expenses

I need the answers please