1/15
A business sells second-hand vehicles. State the term for “motor vehicles for resale”
Trade receivables
2/15
Accountants refer to an economic event as a
purchase
sale
3/15
Owner's equity is best depicted by the following:
4/15
The basic accounting equation for a company may be expressed as
Assets = Equities
All of above
5/15
are future economic benefits
possess service potential
are things of value used by the business in its operation.
6/15
sale of merchandise
7/15
Sources that increase shareholders’ equity are
expenses
8/15
A net loss will result during a time period when
liabilities exceed assets
dividends exceed investments
expenses exceed income
income exceed expenses
9/15
If total liabilities increased by $30,000 and total equity increased by
$20,000 during a period of time, then total assets must change by what amount and
direction during that same period?
$50,000 decrease
$10,000 decrease
$10,000 increase
$50,000 increase
10/15
If total liabilities decreased by $30,000 and sharetockholders' total equity increased by
$20,000 during a period of time, then total assets must change by what amount and
direction during that same period?
$50,000 decrease
$10,000 decrease
$50,000 increase
11/15
Every transaction affects at least two accounts.
12/15
The basic accounting equation is stated as
Assets = Liabilities ?
13/15
The basic accounting equation is in balance when claims by external parties and the owner against
the business equal the
14/15
In a company, Retained Earnings is a part of ownershareholders’ equity.
15/15
Cash and supplies are both classified as current assets
