A debt that a business owes is called ________. A) an asset B) a liability C) stockholders’ equity D) revenue ANSWER B
Date: September 2nd, 2020
Equity increases when revenues are earned. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Equity decreases with expenses and revenues. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The three types of events that affect retained earnings are dividends, revenues, and expenses. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Dividends are the expenses of a business. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Distribution of dividends represents increases in retained earnings. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
Common stock represents the basic ownership of every corporation. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
International Financial Reporting Standards (IFRS) is the main U.S. accounting rule book and is currently created and governed by the Financial Accounting Standards Board. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The assets of Moon Company are $160,000 and the total liabilities are $60,000. The equity is ________. A) $160,000 B) $220,000 C) $60,000 D) $100,000 ANSWER D .Equity = Assets – Liabilities Equity = 160,000 – 60,000 = 100,000
Date: September 2nd, 2020
A publicly traded company in the United States does not come under Securities and Exchange Commission regulations as long as it follows the rules of GAAP. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
