Suppose you are starting a medical data analytics firm. Which form of business will limit your liability for the business to the amount you have invested?
A. Proprietorship
B. Partnership
Corporation
D. None of the above
Rosenbaum Enterprises buys a warehouse for $500,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $550,000 for the warehouse. The seller had originally purchased the building for $475,000. Rosenbaum has a similar warehouse on the West Coast that has book value of $510,000. Under the historical cost principle, Rosenbaum should record the building for
A. $475,000
B. $500,000
C. $510,000
D. $550,000
The accounting equation can be expressed as
Assets - Liabilities = Owners’ equity
B. Owners’ equity – Assets = Liabilities
C. Assets = Liabilities - Owners’ equity
D. Assets + Liabilities = Owners’ equity