Wk 2 – Practice: Topic 4: The Balance Sheet Quick Check

Which of the following is generally considered to be an asset? -Accounts receivable -Mortgage payable -Unearned revenue -Notes payable

Accounts receivable

The basic accounting equation is: -Assets + Owners' Equity = Liabilties -Assets = Liabilities - Owners' Equity -Assets = Liabilities + Owners' Equity -Liabilities - Owners' Equity = Assets

Assets = Liabilities + Owners' Equity

Bookmark question for later The total amount invested to acquire an ownership interest in a corporation is called: -Capital stock -Owners' equity -Net assets -Retained earnings

Capital Stock

Distributions by a corporation to its stockholders are called: -Withdrawals -Retained earnings -Dividends -Income

Dividends

The idea that an increase or decrease on one side of the accounting equation must be offset exactly by an increase or decrease on the other side of the accounting equation is called: -Going concern assumption -Double-entry accounting -Additive concept -Monetary measurement concept

Double-entry accounting

What is the primary limitation of the balance sheet? -It does not reflect the number of shares of capital stock issued. -It does not reflect the net assets of a company. -It does not reflect the undistributed earnings of a company. -It does not reflect the current value of the company.

It does not reflect the current value of the company.

Which of the following is true of the balance sheet? -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. -It includes revenue and expense accounts.

It identifies a company's assets and liabilities as of a specific date.

An enterprise's obligations to pay cash or other economic resources to others are called: -Expenses -Liabilities -Losses -Assets

Liabilities

Bookmark question for later Which of the following types of accounts are found on the income statement? -Liabilities -Revenues -Owners' equity -Assets

Revenues

Net assets are equal to: -Total assets minus total liabilities -Total assets minus net income -Total assets minus owners' equity -Total assets minus dividends paid

Total assets minus total liabilities