【正文】 ding for $500,000. Maximum Experience had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maximum Experience use to record the building on its records at $500,000?Monetary unit principleB.Cost principleD.Revenue recognition principle129.A.Is subject to double taxation.C.Is the same as a corporation.E.sl: C5A partnership:Is also called a sole proprietorship.B.Has to have a written agreement in order to be legal.D.Has owners called shareholders.131.s balance sheet should show the pany39。A.The current market value of the asset received in all cases.C.The best estimate of a certified internal auditor.E.slt: C5Which of the following accounting principles would require that all goods and services purchased be recorded at cost?Goingconcern principle.B.Cost principle.D.Consideration principle.If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000, the land account transaction amount to handle the sale of the land in the seller39。A.$85,000 decreaseC.$137,000 decreaseE.lt: C5If a parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by its purchasers as easily being worth $140,000, and is sold for $137,000. What is the effect of the sale on the accounting equation for the seller?Assets increase $52,000。s equity increases $52,000B. owner39。Assets increase $137,000。s equity increases $137,000D. owner39。None of these$137,000 $85,000 = $52,000137.A. owner39。 liabilities decrease $30,000B. owner39。 liabilities decrease $30,000C. owner39。 liabilities decrease $30,000D. owner39。 liabilities decrease $30,000E. owner39。 liabilities decrease $30,000$137,000 $85,000 30,000 = 22,000An example of an operating activity is:Paying wages.B.Borrowing money from a bank.D.Paying off a loan.140.A.Involve the acquiring and disposing of resources that an organization uses to acquire and sell its products or services.C.Are the carrying out of an organization39。Involve using resources to research, develop, purchase, produce, and market products and services.141.A.Involve using resources to research, develop, purchase, produce, distribute and market products and services.C.Are also called asset management.E.sy: C6The major activities of a business include:Operating.B.Investing.D.sy: C6An example of an investing activity is:Paying wages of employees.B.Purchase of land.D.Contribution from owner.144.A.Represents the amount of assets owners put into a business.C.Is the excess of revenues over expenses.E. claims against assets.145.ytResources owned or controlled by a pany that are expected to yield future benefits are:Assets.B.Liabilities.D.s Equity.E.sytGross increases in equity from a pany39。A.Revenues.C.Owner39。Expenses.148.A.The excess of revenues over expenses.C.The same as revenue.E.sytThe difference between a pany39。A.Expense.C.Revenue.E.sytCreditors39。A.Expenses.C.Equity.E.sytDecreases in equity that represent costs of assets or services used to earn revenues are called:Liabilities.B.Withdrawals.D.Owner39。sytThe description of the relation between a pany39。A.Accounting equation.C.Return on equity ratio.E.sytAssets = Liabilities + Equity is known as the:Ine statement equation.B.Objectivity principle.D.Transaction principle.154.A.Are gross increases in equity from a pany39。Are the costs of assets or services used to earn revenues.D.Are creditors claims on assets.155.A.Is the same as revenue.C.Occurs when expenses exceed assets.E.s personal use.156.A.The excess of expenses over assets.C.The gross increase in equity from a pany39。The costs of assets or services used.157.A.Identifies, records, and municates information about business activitiesC.Involves interpreting information and designing information systems to provide useful reports that monitor and control a pany39。All of these158.A.$67,000.C.$131,000.E.ytAnother name for equity is:Net ine.B.Net assets.D.Net loss.160.A.Equity.C.Net ine.E.syWhich of the following statements is true about assets?They are economic resources owned or controlled by the business.B.They appear on the balance sheet.D.All of these.162.A.Withdrawal.C.Contribution.E.syDistributions by a business to its owners are called:Withdrawals.B.Assets.D.Net Ine.164.A.Debits equal credits.C.Another name for the accounting equation.E.syThe assets of a pany total $700,000。A.$700,000.C.$200,000.E. investment is known.$700,000 $200,000 = $500,000166. Accounts Receivable, $7, Equipment, $12,000。s equity as of July 1 of the current year?$8,300B.$20,500D.$40,400$20,500 + $7,250 + $650 + $12,000 $9,300 = $31,100167.A.Accounts receivable.C.Expenses.E.syAn exchange of value between two entities is called:The accounting equation.B.A business transaction.D.Net Ine.169.A. liabilities, no effect。Assets, $30,000 decrease。 equity, no effect.C. liabilities, $30,000 increase。Assets, no effect。 equity, $30,000 increase.E. liabilities, no effect。ytHow would the accounting equation of Boston Company be affected by the billing of a