Reference no: EM132999033

Problem 1: For accounting purposes, the business entity should be considered separate from its owners if the entity is

Select one:

a. a corporation

b. a proprietorship

c. a partnership

d. any of these

Problem 2: A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to

Select one:

a. increase an asset, increase owner's equity

b. decrease an asset, decrease a liability

c. increase an asset, decrease another asset

d. increase an asset, increase a liability