VYC1 Chapter 2 Quiz

Total assets of Douglas Fuhr Furniture Co. are $36,000 and the total liabilities are $12,000. What is the amount of the owner's equity? $36,000 $24,000 $48,000 $6,000

$24,000

Which financial statement is reported as of a specific date? Balance Sheet Statement of Owner's Equity Income Statement Statement of Changes in Financial Position

Balance Sheet

Examples of assets are cash and accounts receivable. cash and revenue. cash and rent expense. investments by the owner and revenue.

Cash and Accounts Receivable

The financial statement that is prepared first is up to the accountant. the income statement. the balance sheet. the statement of owner's equity.

Income Statement

Assets always equal debts of the business plus the financial interest of the owner.

True

When the owner writes a company check to pay the firm's electric bill, assets and owner's equity increase. assets decrease and expenses increase. assets and liabilities decrease. expenses increase and owner's equity increases.

assets decrease and expenses increase.

The income statement shows the financial position of a business on a specific date. revenue and owner's equity. the results of operations for a period of time. the total value of the business.

the results of operations for a period of time.

A net loss results when expenses are greater than revenue. when assets are greater than liabilities. when revenue is greater than expenses. when expenses are greater than assets.

when expenses are greater than revenue.

When cash is collected from accounts receivable, the total amount of assets increases.

False

In order to analyze the effect of a business transaction one must do all of the following except identify the property. identify who owns the property. determine which asset, liability, or equity accounts will change. determine the amount of increase or decrease.

determine which asset, liability, or equity accounts will change.