1. The owner is not responsible for the entity's taxes and debts if the entity is organized as a(n):
   1. corporation
   2. sole proprietorship.
   3. unlimited liability corporation.
   4. limited liability corporation.

2. Which of the following expressions of the accounting equation is correct?
   1. Liabilities + Assets = Stockholders' Equity
   2. Stockholders' Equity + Assets = Liabilities
   3. Assets = Liabilities Stockholders' Equity
   4. Stockholders' Equity = Assets Liabilities

3. Expenses are reported on the:
   1. income statement in the time period in which they are paid.
   2. income statement in the time period in which they are incurred.
   3. balance sheet in the time period in which they are paid.
   4. balance sheet in the time period in which they are incurred.

4. Alpha sold $2,000 of services to Beta on credit. Beta promised to pay for it next month. Alpha will report a $2,000:
   1. Accounts Receivable.
   2. Account Payable.
   3. increase in Cash, since Beta is sure to pay next month.
   4. net loss.