C14: Equities (Part 1)

Which of the following form of business is subjected to the most regulations from government?

• Sole-proprietorship

• Limited liability partnership

• Private limited company

Which of the following form of business has the least access to fund?

• Sole-proprietorship

• Limited liability partnership

• Private limited company

Which of the following form of business allows for a minimum of 2 owners?

• Sole-proprietorship

• Limited liability partnership

• Private limited company

Which of the following form of business will require the owner to pay for the business' losses and debts is the business is incapable of paying off?

• Sole-proprietorship

• Limited liability partnership

• Private limited company

Which of the following form of business will offer the owner the highest level of control over his/her business?

• Sole-proprietorship

• Limited liability partnership

• Private limited company

Which of the following form of business is the easiest for transfer of ownership?

• Sole-proprietorship

• Limited liability partnership

• Private limited company

Interpret the following journal entry:

Dr Capital

Cr Drawings

• Assets of business being withdrawn by owner for personal use

• New Capital invested by owner into the business

• Closing of Drawings account to Capital

• Closing of income summary to Capital Account

Interpret the following journal entry:

Dr Assets

Cr Capital

• Assets of business being withdrawn by owner for personal use

• New Capital invested by owner into the business

• Closing of Drawings account to Capital

• Closing of income summary to Capital Account

Interpret the following journal entry:

Dr Drawings

Cr Assets

• Assets of business being withdrawn by owner for personal use

• New Capital invested by owner into the business

• Closing of Drawings account to Capital

• Closing of income summary to Capital Account

The following is the closing of income summary to capital account. Is the business making a profit or loss?

Dr Capital

Cr Income summary

• Profit

• Loss