Question 1

What is the formula for determining owners' equity?
Assets minus liabilities
Assets plus liabilities
Assets minus goodwill
Current assets minus current liabilities
There is no formula for computing owners' equity

Accepted Answer

The answer of What is the formula for determining owners'...

Question 2

The accounting equation is
owners' equity - assets = liabilities.
owners' equity - liabilities = assets.
assets + liabilities = owners' equity.
assets + owners' equity = liabilities.
assets = liabilities + owners' equity.

Accepted Answer

The answer of The accounting equation is
owners' equity - assets...

Question 3

Under which condition is owners' equity negative?
Credits exceed debits.
Assets are greater than liabilities.
Assets and liabilities are equal.
Debits exceed credits.
Liabilities are greater than assets.

Accepted Answer

The answer of Under which condition is owners' equity negative?
Credits...

Question 4

Barry is a private accountant who is working through the accounting cycle. He has already analyzed transaction documents. His next step is to
record transactions in a journal.
do a trial balance.
prepare financial statements.
analyze the financial statements using ratio analysis.
transfer entries from the journal to the ledger.

Accepted Answer

The answer of Barry is a private accountant who is...

Question 5

Owners' equity is
the profits earned by and reinvested in the company.
the amount of money that owners would receive if they sold all of a firm's assets and paid all of its liabilities.
the amount of money originally invested in a business by its owners.
a debt owed by a firm to an outside organization or individual.
any economic resource expected to benefit a firm or an individual who owns it.

Accepted Answer

The answer of Owners' equity is
the profits earned by and...

Question 6

Janice is a private accountant. The first thing she must do when working through the accounting cycle is to
record transactions in a journal.
do a trial balance.
analyze transaction documents.
analyze the financial statements using ratio analysis.
transfer entries from the journal to the ledger.

Accepted Answer

The answer of Janice is a private accountant. The first...

Question 7

A(n) ________ is a debt owed by a firm to an outside organization or individual.
liability
owners' equity
debit
asset
credit

Accepted Answer

The answer of A(n) ________ is a debt owed by...

Question 8

________ is the amount of money owners would theoretically receive if they sold all of a firm's assets and paid all of its liabilities.
Asset
Debit
Credit
Liability
Owners' equity

Accepted Answer

The answer of ________ is the amount of money owners...

Question 9

Which of the following is correct with respect to the issue of owners' equity?
It is the amount of cash listed on the balance sheet.
It is the amount of money the owners would receive if they sold all of a company's assets and paid all of its liabilities.
If a company's assets exceed its liabilities, owners' equity equals $10 000 for each dollar of assets.
If a company's liabilities exceed its assets, owners' equity equals minus $10 000 for each dollar of liabilities.
All of these are correct.

Accepted Answer

The answer of Which of the following is correct with...

Question 10

Financial statements fall into three broad categories, which are
debits, credits, and loans.
income statements, balance sheets, and statements of cash flows.
assets, liabilities, and owners' equity.
cash, marketable securities, and goodwill.
budgets, income statements, and profit-and-loss statements.

Accepted Answer

The answer of Financial statements fall into three broad categories,...

Question 11

Under which condition is owners' equity positive?
Assets are greater than liabilities.
Assets and liabilities are equal.
Credits exceed debits.
Liabilities are greater than assets.
Debits exceed credits.

Accepted Answer

The answer of Under which condition is owners' equity positive?
Assets...

Question 12

Sheena is a private accountant who is working through the accounting cycle. She has completed transferring entries from the journal to a ledger. Her next step is to
record transactions in a journal.
do a trial balance.
prepare financial statements.
analyze the financial statements using ratio analysis.
transfer entries from the journal to the ledger.

Accepted Answer

The answer of Sheena is a private accountant who is...

Question 13

A(n) ________ is any economic resource expected to benefit a firm or the individual who owns it.
owners' equity
asset
debit
liability
credit

Accepted Answer

The answer of A(n) ________ is any economic resource expected...

Question 14

Al Rosen is working as a private investigator of white-collar crimes. He is
a GAAP accountant.
a financial scanner.
a whistleblower.
an auditor.
a forensic accountant.

Accepted Answer

The answer of Al Rosen is working as a private...

Question 15

Which of the following is correct with regard to private accountants?
They are hired by business firms who do not want to use the services of CAs or CGAs.
They are employed by business firms in areas such as marketing research, law, and production technology.
They are becoming less common as CAs, CGAs, and CMAs become more prominent and skilled.
They are almost exclusively found at the head office of business firms.
They are hired to deal with companies' day-to-day accounting needs.

Accepted Answer

The answer of Which of the following is correct with...

Question 16

An asset is
the amount of money originally invested in a business by its owners.
the amount of money that owners would receive if they sold all of a firm's assets and paid all of its liabilities.
the profits earned by and reinvested in the company.
any economic resource expected to benefit a firm or an individual who owns it.
a debt owed by a firm to an outside organization or individual.

Accepted Answer

The answer of An asset is
the amount of money originally...

Question 17

Which of the following is correct with regard to auditing?
An audit focuses specifically on whether the inventory the company claims it has is actually there.
Companies do not normally have to supply audited financial statements when they apply for loans or when selling stock.
Audits determine if the firm has controls in place to prevent errors or fraud from going undetected.
Auditors generally do not have to examine documents such as cancelled cheques, payroll record, and cash receipts in order to conduct their audit.
Auditors ensures that the financial state of the company will be accurately reported.

Accepted Answer

The answer of Which of the following is correct with...

Question 18

Owners' equity consists of two sources of capital. They are
the amount that the owners originally invested and profits earned by and reinvested in the company.
bank loans and money received from factoring accounts receivable.
bank loans and proceeds from the sale of stock.
trade credit and bank loans.
dividends received by investors and bank loans.

Accepted Answer

The answer of Owners' equity consists of two sources of...

Question 19

Max Corp. has total assets of $100 million and total liabilities of $30 million. Last year it earned a profit of $3 million. What is owners' equity at Max Corp.?
$3 million
$100 million
$103 million
$73 million
$70 million

Accepted Answer

The answer of Max Corp. has total assets of $100...

Question 20

According to the accounting equation, if assets equal $4000 and liabilities equal $1500, then owner's equity would equal
$5500.
$2500.
$3500.
$8000.
it is not possible to tell with the information given.

Accepted Answer

The answer of According to the accounting equation, if assets...

Quiz 11: Understanding Accounting

What is the formula for determining owners' equity? Assets minus liabilities Assets plus liabilities Assets minus goodwill Current assets minus current liabilities There is no formula for computing owners' equity

The accounting equation is owners' equity - assets = liabilities. owners' equity - liabilities = assets. assets + liabilities = owners' equity. assets + owners' equity = liabilities. assets = liabilities + owners' equity.

Under which condition is owners' equity negative? Credits exceed debits. Assets are greater than liabilities. Assets and liabilities are equal. Debits exceed credits. Liabilities are greater than assets.

Janice is a private accountant. The first thing she must do when working through the accounting cycle is to record transactions in a journal. do a trial balance. analyze transaction documents. analyze the financial statements using ratio analysis. transfer entries from the journal to the ledger.

A(n) ________ is a debt owed by a firm to an outside organization or individual. liability owners' equity debit asset credit

________ is the amount of money owners would theoretically receive if they sold all of a firm's assets and paid all of its liabilities. Asset Debit Credit Liability Owners' equity

Under which condition is owners' equity positive? Assets are greater than liabilities. Assets and liabilities are equal. Credits exceed debits. Liabilities are greater than assets. Debits exceed credits.

A(n) ________ is any economic resource expected to benefit a firm or the individual who owns it. owners' equity asset debit liability credit

Al Rosen is working as a private investigator of white-collar crimes. He is a GAAP accountant. a financial scanner. a whistleblower. an auditor. a forensic accountant.

Max Corp. has total assets of $100 million and total liabilities of $30 million. Last year it earned a profit of $3 million. What is owners' equity at Max Corp.? $3 million $100 million $103 million $73 million $70 million

According to the accounting equation, if assets equal $4000 and liabilities equal $1500, then owner's equity would equal $5500. $2500. $3500. $8000. it is not possible to tell with the information given.