Which of the following is the correct accounting equation? A) Assets + Liabilities = Equity B) Assets = Liabilities + Equity C) Assets + Revenues = Equity D) Assets + Revenues = Liabilities + Expenses ANSWER B
Date: September 2nd, 2020
Genity Corporation records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the following accounting assumptions does this represent? A) economic entity assumption B) going concern assumption C) accounting period assumption D) monetary unit assumption ANSWER D
Date: September 2nd, 2020
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
Which of the following statements is true of a sole proprietorship? A) A sole proprietorship joins two or more individuals as co-owners. B) The sole proprietor is personally liable for the liabilities of the business. C) A sole proprietorship is taxed separately from the owner. D) A sole proprietorship has to pay business income taxes. […]
Date: September 2nd, 2020
The taxable income of a sole proprietorship is ________. A) combined with the personal income of the proprietor B) not combined with the proprietor’s personal income C) not taxable D) handled similarly to that of a corporation ANSWER A
Date: September 2nd, 2020
In a limited-liability company, the ________. A) members are personally liable to pay the entity’s debts B) business pays income tax on earnings C) members are liable for each other’s actions D) members pay income tax on their share of earnings ANSWER D
Date: September 2nd, 2020
