Balance Sheet and Net Income

Financial Accounting 1. Obligation of business that represents the claims of these against the assets of the less cash is called?
A. Asset
B. An expense (WA)
C. Revenue
D. An equity
E. Liability 2. Net income results when
A. Assets > liability
B. Revenue = expenses
C. Revenue > expenses
D. Revenue < expenses
E. None 3. Resources owned by a business are referred to as
A. Stockholders equity
B. Liability
C. Assets
D. Revenue (WA)
E. None 4. Expenses are incurred
A. Only one rare occasion (WA)
B. To produce asset (WA)
C. To produce liability (WA)
D. To generate revenue
E. None. 5. Which is NOT an accounting assumption
A. Integrity
B. Going concern
C. Time period
D. Economic entitle
E. None. 6. Susana metro invested $ 7,009.87 now, and will receive $20,000 at the end of 11 years. What annual arte of investment will she be earning on her investments? Fixed cost of $ 11 Factor 7% 11 years 2.105 8% 11 years 2.332 9% 11 years 2.580 10% 11 years 2.853 A. 8 % (WA)
B. 7 %
C. 9 %
D. 10 %
E. None 7. Under the accurate basis of accounting?
A. Cash must be received before revenue us recognized
B. Net income is calculated by matching cash outflows against cash flow
C. Events that change a company’s financial statements are recognized in the periods they occur rather than in the period in which cash flow is paid or received.
D. The ledge account must be adjusted to reflect a cash basis of accounting before a final statements are