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1. A corporation: a. can continue indefinitely b. is owned by stockholders c. has limited risk to stockholders d. All of the above. 2. The Sarbanes-Oxley Act was passed to: a. prevent fraud at public companies b. replace all of the old accounting procedures with new ones c. improve the accuracy of the company's financial reporting d. a and c only 3. A legal firm would be considered a a. merchandise company b. manufacturer c. service company d. None of the above. 4. Which of the following is not an asset? a. Cash b. Accounts Receivable c. Accounts Payable d. Buildings 5. If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in the owner's equity amount? a. increase of $2,000 b. decrease of $2,000 c. increase of $10,000 d. decrease of $10,000 6. The claims of creditors against the assets are a. expenses b. revenues c. liabilities d. owner's equity