2.2 Balance Sheet
The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the Monetary measurement concept Going concern concept Arm's-length transaction assumption Entity concept
Going concern concept
Which of the following is true of the balance sheet? It identifies a company's assets and liabilities as of a specific date. It includes revenue and expense accounts. It discloses the amount of dividends paid. It shows the results of operations for an accounting period.
It identifies a company's assets and liabilities as of a specific date.
Markanich Company purchased land for $90,000 in 2010. In 2013, the land is valued at $115,000. The land would appear on the company's books in 2013 at $75,000 $25,000 $90,000 $115,000
$90,000
Economic resources that are owned or controlled by an enterprise are called Revenues Assets Gains Liabilities
Assets
The basic accounting equation is Liabilities − Owners' Equity = Assets Assets + Owners' Equity = Liabilities Assets = Liabilities + Owners' Equity Assets + Liabilities = Owners' Equity
Assets = Liabilities + Owners' Equity
The financial statement that reports resources owned, the obligations to transfer resources to other organizations, and the claims by the entity's owners is known as the Statement of retained earnings Balance sheet Income statement Statement of cash flows
Balance sheet
Which of the following financial statements provides a picture of the enterprise at a particular point in time? Statement of cash flows Statement of retained earnings Income statement Balance sheet
Balance sheet
Which of the following accounts is considered to be the most liquid? Land Inventory Cash Accounts Receivable
Cash
Which of the following distinguishes between current and long-term assets? Classified balance sheet Income statement Comparative balance sheet Liquidity balance sheet
Classified balance sheet
Which of the following is the reason that the accounting equation is true by definition? None of these are true, the accounting equation is merely a coincidence Liabilities are the source that funds the purchase of assets Liabilities and owner's equity are the sources that fund the purchase of assets Assets are the source that funds the purchase of liabilities and owner's equity
Liabilities and owner's equity are the sources that fund the purchase of assets
Another name for the balance sheet is the Statement of earnings Statement of financial position Statement of cash flows Retained earnings statement
Statement of financial position