1/15
A business sells second-hand vehicles. State the term for “motor vehicles for resale”
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Trade receivables
2/15
Accountants refer to an economic event as a
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
purchase
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
sale
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
3/15
Owner's equity is best depicted by the following:
4/15
The basic accounting equation for a company may be expressed as
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
Assets = Equities
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
All of above
5/15
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
are future economic benefits
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
possess service potential
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
are things of value used by the business in its operation.
6/15
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
sale of merchandise
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
7/15
Sources that increase shareholders’ equity are
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
expenses
8/15
A net loss will result during a time period when
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
liabilities exceed assets
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
dividends exceed investments
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
expenses exceed income
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
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?
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
$50,000 decrease
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
$10,000 decrease
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
$10,000 increase
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
$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?
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
$50,000 decrease
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
$10,000 decrease
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
![](https://i0.wp.com/principlesofaccounts.com/wp-content/plugins/smartquizbuilder/includes/images/import/sqb_empty.jpg?w=640&ssl=1)
$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