Quiz Solutions

Which of the following is true of retained earnings? A) Ret

Which of the following is true of retained earnings? A) Retained earnings decrease with payment of dividends. B) Retained earnings increase with purchase of assets. C) Retained earnings decrease with collection of revenue. D) Retained earnings increase with payment on account. ANSWER A

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Date: September 2nd, 2020

Equity of a corporation is broken out into two components. W

Equity of a corporation is broken out into two components. Which of the following are the two components of the equity of a corporation? A) current assets and fixed assets B) common stock and liabilities C) revenues and expenses D) contributed capital and retained earnings ANSWER D

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Date: September 2nd, 2020

A transaction is any event that affects the financial positi

A transaction is any event that affects the financial position of the business and can be easily estimated. Indicate whether the statement is true or false ANSWER FALSE .A transaction is any event that affects the financial position of the business and can be measured reliably.

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Date: September 2nd, 2020

John contributed $6,000 to the business by opening a bank ac

John contributed $6,000 to the business by opening a bank account in the name of the business, United Internists. The corporation issued common stock to John. This transaction results in an increase in the assets of the business. Indicate whether the statement is true or false ANSWER TRUE

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Date: September 2nd, 2020

Accountants record ________. A) economic recessions B) esti

Accountants record ________. A) economic recessions B) estimated future transactions C) a transaction or any event that affects the financial position of the business and can be measured with faithful representation D) the $20,000 increase in value of a building that actually cost $50,000 but could be sold for $70,000 ANSWER C

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Date: September 2nd, 2020