All business forms share equal limited liability. QUESTION 23 Which of the following accounts would normally have a credit balance? Salaries Payable. Deferred Revenue, Delivery Expense. Cash Repairs and Maintenance Expense, Dividends. Accounts Payable. Service Revenue. Common Stock. Income Tax Payable, Service Revenue, Dividends. QUESTION 24 Which statement below best describes the accounting equation? Financing activities equal investing and operating activities. The change in retained earnings equals net income less dividends. Resources of the company equal creditors' and owners' claims to those resources. Equality of revenue and expense transactions over time. QUESTION 25 Which step in the process of measuring external transactions involves assessing the equality of total debits and total credits for the period? Prepare a trial balance. Analyze the impact of the transaction on the accounting equation. Post the transaction to the T-account in the general ledger, Use source documents to determine accounts affected by the transaction QUESTION 20 Using the information below from the accounting records of Thomas Corporation, stockholders' claims to the company's resources amount to: $ $ $ $ 1,200,000 800,000 100,000 250,000 Assets Liabilities Net income Retained earnings $1.200.000 5800,000 $250.000 $400,000 QUESTION 21 When the company pays stockholders a dividend, what is the effect on the accounting equation for that company? Decrease stockholders' equity and increase assets. Increase liabilities and increase assets. Decrease assets and decrease liabilities. Decrease assets and decrease stockholders' equity. QUESTION 22 Which business form has the advantage of limited liability? Corporation Partnership Sole proprietorship. All business forms share equal limited liability