QUESTION In your business, you record revenue when money comes in from customers, and record expenses when you pay bills. What basis of accounting are you using? A) cash B) income C) accrual D) debit ANSWER A
Date: September 3rd, 2020
QUESTION Owners’ equity can be also known as ________ equity. a. current b. long-term c. shareholders’ d. asset ANSWER c
Date: September 3rd, 2020
QUESTION In your business, you record income when you deliver a good or provide a service, and record expenses when they are incurred, not necessarily when you pay the bills. What basis of accounting are you using? A) cash B) income C) accrual D) debit ANSWER C
Date: September 3rd, 2020
QUESTION A record of a company’s assets and liabilities at a fixed point in time is known as a(n) ________. a. cash flow statement b. balance sheet c. account payable d. income statement ANSWER b
Date: September 3rd, 2020
QUESTION Accounts receivable is _______. a. any money that you or a business are owed b. property, manufacturing plants, and equipment c. any money that you owe to a business d. credit that is extended to a business for necessary purchases ANSWER a
Date: September 3rd, 2020
QUESTION What are accounts receivable? A) paid bills for products or services a company has sold B) unpaid bills for products or services a company has sold C) unpaid bills for expenses a company has incurred D) paid bills for expenses a company has incurred ANSWER B
Date: September 3rd, 2020
QUESTION You are an antiques dealer. Which of the following would NOT be an example of your operating expenses? A) rent paid to the owner of your building B) amounts spent on utilities C) money paid for administrative salaries D) purchase of antiques for resale ANSWER D
Date: September 3rd, 2020
QUESTION All of the following are included in the fundamental accounting equation EXCEPT ________. a. assets b. owners’ equity c. bonds d. liabilities ANSWER c
Date: September 3rd, 2020
QUESTION Shareholders are A) people who own a part of a company and have a vested interest in its profits. B) people who may or may not own a part of a company but are directly affected by its activities. C) computer systems that keep track of a company’s stock price. D) companies that track […]
Date: September 3rd, 2020
QUESTION From looking at Apple Inc’s balance sheet in Figure 2.2, an investor knows that Apple would not be forced to sell fixed assets to cover its debts because ________ are more than enough to pay off all its liabilities. a. property, plant, and equipment b. current assets c. intangible assets d. common stock […]
Date: September 3rd, 2020
