loader  Loading... Please wait...

Question(s) / Instruction(s):

81. A basic assumption of accounting assumes that the dollar is a. unrelated to business transactions. b. a poor measure of economic activities. c. the common unit of measure for all business transactions. d. useless in measuring an economic event.

82. A problem with the monetary unit assumption is that a. the dollar has not been stable over time. b. the dollar has been stable over time. c. the dollar is a common medium of exchange. d. it is impossible to account for international transactions.

83. The common characteristic possessed by all assets is a. long life. b. great monetary value. c. tangible nature. d. future economic benefit.

84. Owner's equity is best depicted by the following: a. Assets = Liabilities. b. Liabilities + Assets. c. Residual equity + Assets. d. Assets – Liabilities.

85. The basic accounting equation may be expressed as a. Assets = Equities. b. Assets – Liabilities = Owner's Equity. c. Assets = Liabilities + Owner's Equity. d. all of these. 86. Liabilities a. are future economic benefits. b. are existing debts and obligations. c. possess service potential. d. are things of value used by the business in its operation.

87. Liabilities of a company would not include a. notes payable. b. accounts payable. c. wages payable. d. cash.

88. Liabilities of a company are owed to a. debtors. b. benefactors. c. creditors. d. underwriters.

89. Owner's equity can be described as a. creditorship claim on total assets. b. ownership claim on total assets. c. benefactor's claim on total assets. d. debtor claim on total assets.

90. Owner's equity is often referred to as a. residual equity. b. leftovers. c. spoils. d. second equity.

91. When an owner withdraws cash or other assets from a business for personal use, these withdrawals are termed a. depletions. b. consumptions. c. drawings. d. a credit line.

92. Capital is a. an owner's permanent investment in the business. b. equal to liabilities minus owner's equity. c. equal to assets minus owner's equity. d. equal to liabilities plus drawings.

93. Revenues would not result from a. sale of merchandise. b. initial investment of cash by owner. c. performance of services. d. rental of property.

94. Sources of increases to owner's equity are a. additional investments by owners. b. purchases of merchandise. c. withdrawals by the owner. d. expenses.

95. The basic accounting equation cannot be restated as a. Assets – Liabilities = Owner's Equity. b. Assets – Owner's Equity = Liabilities. c. Owner's Equity + Liabilities = Assets. d. Assets + Liabilities = Owner's Equity.

96. Owner's equity is increased by a. drawings. b. revenues. c. expenses. d. liabilities.

97. Owner's equity is decreased by a. assets. b. revenues. c. expenses. d. liabilities.

98. If total liabilities increased by $4,000, then a. assets must have decreased by $4,000. b. owner's equity must have increased by $4,000. c. assets must have increased by $4,000, or owner's equity must have decreased by $4,000. d. assets and owner's equity each increased by $2,000.

99. Collection of a $500 Accounts Receivable a. increases an asset $500; decreases an asset $500. b. increases an asset $500; decreases a liability $500. c. decreases a liability $500; increases owner's equity $500. d. decreases an asset $500; decreases a liability $500.

100. Revenues are a. the cost of assets consumed during the period. b. gross increases in owner's equity resulting from business activities. c. the cost of services used during the period. d. actual or expected cash outflows.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$4.00

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494