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DAM MANH LONG NMBS12K
1. Which of the following is a form of the balance sheet equation?
a. Assets + Liabilities = Owners' Equity b. Assets = Liabilities + (Paid-in Capital + Retained Income) c. Assets + Owners’ Equity = Liabilities d. Assets - Paid-in Capital = Liabilities - Retained Income
2. Which of the following financial statements is a “snapshot” of a company’s financial status at an instant of time?
a. balance sheet b. income statement c. statement of retained earnings d. cash flow statement e. both b. and d.
3. The effect of purchasing inventory using trade credit on the balance sheet equation is to _____.
a. decrease assets and increase liabilities b. increase owners' equity and decrease liabilities c. increase assets and increase liabilities d. increase assets and increase owners' equity
4. The effect of selling an item on credit on the balance sheet is to _____.
a. decrease assets and increase liabilities b. increase owner’s equity and decrease liabilities c. increase assets and increase liabilities d. increase assets and increase owner’s equity
5. When revenues are recognized as earned and expenses are recognized as incurred, a company is using _____.
a. the accrual basis of accounting b. the cash basis of accounting c. both of these d. neither of these
6. Which basis of accounting violates the matching principle?
a. accrual basis of accounting b. cash basis of accounting c. both a. and b. d. neither a. nor b.
7. What is considered to be a bundle of economic services awaiting future use?
a. liabilities b. owners’ equity c. expenses d. assets e. revenue
8. After the bundle of economic services is used, where does the expired cost appear?
a.
1. Which of the following is a form of the balance sheet equation?
a. Assets + Liabilities = Owners' Equity b. Assets = Liabilities + (Paid-in Capital + Retained Income) c. Assets + Owners’ Equity = Liabilities d. Assets - Paid-in Capital = Liabilities - Retained Income
2. Which of the following financial statements is a “snapshot” of a company’s financial status at an instant of time?
a. balance sheet b. income statement c. statement of retained earnings d. cash flow statement e. both b. and d.
3. The effect of purchasing inventory using trade credit on the balance sheet equation is to _____.
a. decrease assets and increase liabilities b. increase owners' equity and decrease liabilities c. increase assets and increase liabilities d. increase assets and increase owners' equity
4. The effect of selling an item on credit on the balance sheet is to _____.
a. decrease assets and increase liabilities b. increase owner’s equity and decrease liabilities c. increase assets and increase liabilities d. increase assets and increase owner’s equity
5. When revenues are recognized as earned and expenses are recognized as incurred, a company is using _____.
a. the accrual basis of accounting b. the cash basis of accounting c. both of these d. neither of these
6. Which basis of accounting violates the matching principle?
a. accrual basis of accounting b. cash basis of accounting c. both a. and b. d. neither a. nor b.
7. What is considered to be a bundle of economic services awaiting future use?
a. liabilities b. owners’ equity c. expenses d. assets e. revenue
8. After the bundle of economic services is used, where does the expired cost appear?
a.