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A corporation has which of the following set of characteristics?

Question options:

	1) shareholder control, income tax disadvantages, increased skills and resources
	2) simple to set up and maintains control with founder
	3) harder to raise funds and gives shareholders control
	4) easier to transfer ownership and raise funds, limited liability

Which of the following statements is true?

Question options:

	1) Credits decrease assets and increase liabilities.
	2) Credits decrease assets and decrease liabilities.
	3) Debits increase assets and increase liabilities.
	4) Debits increase liabilities and decrease assets.

An accountant has debited an asset account for $5,000 and credited a revenue account for $10,000. What can be done to complete the recording of the transaction?

Question options:

	1) Nothing further can be done.
	2) Debit another asset account for $5,000.
	3) Credit a shareholders' equity account for $5,000.
	4) Credit another asset account for $5,000.

The purchase of an asset for cash

Question options:

	1) increases assets and shareholders' equity.
	2) increases assets and liabilities.
	3) decreases assets and increases liabilities.
	4) has no effect on total assets.

Recording revenue

Question options:

	1) increases assets and liabilities.
	2) increases assets and shareholders' equity.
	3) increases assets and decreases shareholders' equity.
	4) has no effect on total assets.

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