1) The nature of an asset is best described as a. something with physical form thats valued at cost of purchase in the accounting records. b. an economic resource representing cash or the right to receive cash in the near future. c. a resource controlled by the company as a result of past events and from which the company expects to receive future economic benefits. d. something owned by a business that has a ready market value. 2) Which financial statement covers a period of time? a. Balance sheet b. Income statement c. Statement of cash flows d. Both b and c 3) How would net income be most likely to affect the accounting equation? a. Increase assets and increase shareholders equity. b. Increase liabilities and decrease shareholders equity. c. Increase assets and increase liabilities. d. Decrease assets and decrease liabilities. 4) Leah Corporation holds cash of $5,000 and owes $25,000 on accounts payable. Leah has accounts receivable of $30,000, inventory of $20,000, and land cost of $50,000. How much are Leahs total assets and shareholders equity? Total Assets. Shareholders Equity a. $100,000 $25,000 b. $105,000 $80,000 c. $105,000 $25,000 d. $25,000 $105,000 5) Which item(s) is (are) reported on the balance sheet? a. Retained earnings b. Accounts payable c. Inventory d. All of the above