Quiz 2a
Complete the following quiz for the lesson: General Purpose Financial Statements
The balance sheet embodies the basic accounting equation (Assets = Liabilities + Owners Equity). *
1 point
Which of the following is not an asset? *
1 point
Which of the following is not an asset? *
1 point
A company's inventory should be recorded on its balance sheet at its cost even if it is obsolete and has no resale value, meaning it is destined for the trash bin. *
1 point
Liabilities on a company's balance sheet should include not only probable future cash obligations but also any probable future obligations to provide services that can be reasonably quantified. *
1 point
Owners Equity can be defined as: *
1 point
If a company's total assets amount to $100,000 and retained earnings and total liabilities amount to $10,000 and $60,000, respectively, then capital contributions must amount to: *
1 point
An owner's contribution/investment of cash into his or her business would *
1 point
The increase in a business' cash as a result of borrowing from a bank would *
1 point
A company's purchase of inventory with cash would *
1 point
A company's profitable sale of inventory to a customer for cash would *
1 point
A company's cash distribution of profits to an owner (dividend) would *
1 point
An owner's contribution/investment of cash into his or her business would be recorded as revenue to the business. *
1 point
Revenues and expenses affect a company's owners equity. *
1 point
If a company sells $2,000 of inventory to a customer for $3,000 cash then *
1 point
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