The equity of Autumn Company is $160,000 and the total liabilities are $50,000. The total assets are ________. A) $320,000 B) $100,000 C) $110,000 D) $210,000 ANSWER D .Assets = Liabilities + Equity Assets = 160,000 + 50,000 = 210,000
Date: September 2nd, 2020
Accountants assume that the dollar’s purchasing power is stable. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Sunlight Company has assets and equity that amount to $200,000 and $90,000, respectively. Liabilities total ________. A) $90,000 B) $110,000 C) $200,000 D) $290,000 ANSWER B .Liabilities = Assets – Equity Liabilities = 200,000 – 90,000 = 110,000
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
What is the accounting equation? Briefly explain each of the three parts. What will be an ideal response ANSWER Assets = Liabilities + Equity. Assets are economic resources that are expected to benefit the business in the future. They are things of value that a business owns or has control of. Liabilities are debts that […]
Date: September 2nd, 2020
International Financial Reporting Standards are comparatively more specific and more rule-based than U.S. GAAP. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
International Financial Reporting Standards ________ U.S. Generally Accepted Accounting Principles. A) are the same as B) are generally less specific than C) are based less on principle than D) leave less room for professional judgment than ANSWER B
Date: September 2nd, 2020
The Public Company Accounting Oversight Board is a watchdog agency that monitors the work of independent accountants who audit public companies. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
