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3) Jason Ford has been the sole owner of a bicycle sales and repair shop for several years. Which of the following business types would limit Jason's personal liability exposure to the entity's debts? A) partnership B) limited-liability company C) sole proprietorship D) Any of the above 8) Dynamic Production Services started the year with total assets of S130,000 and total liabilities of $50,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to S100,000 and S60,000, respectively. During the year, there were no new capital contributions and the owner withdrew $45,000. Calculate Dynamic's net income for the vear A) $40,000 B) $100,000 C) $60,000 D) S130,000 9) The owner's capital account increases with A) the owner's contributions of cash and other assets B) the owner's withdrawals of cash C) net loss of the business D) the purchase of plant assets 11) Fred Jones, the sole owner of a business, withdraws cash for his personal use. How does this transaction affect the accounting equation? A) The assets, liabilities, and equity remain the same B) The assets decrease and equity decreases. C) The assets increase and liabilities decrease. D) The assets decrease and equity increases 13) Rosewood Company purchased land for $140,000 by making a cash payment of $36,000 and promising to pay the remaining amount in a later accounting period. What is the net effect of this transaction on Rosewood's accounting equation? A) assets increase by S140,000 and liabilities decrease by $36,000 B) assets increase by $140,000 and liabilities decrease by $104,000 C) assets and equity increase by $104,000 D) assets and liabilities increase by $104,000

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