1.Which of the following is correct?*

A.assets 7,850 liabilities 1,250 owner's equity 6,600

B.assets 8,200 liabilities 2,800 owner's equity 11,000

C. assets 9,550 liabilities 1,150 owner's equity 8,200

D.assets 5,420 liabilities 6,540 owner's equity 1,120

2.The following can be found in an income statement except*

A.income

B.assets

C.expenses

D. profit or loss

3.Which of the following is not subject to depreciation?*

A.building

B.equipment

C.land

D.machiner

4.The purchase of a service vehicle on account*

A .will increase asset and increase a liability

B. will increase asset and decrease a liability

C. will decrease equity

5.will decrease asset and decrease liability

In the accounting equation, an increase in asset can be associated with*

A.an increase in a liability

B.a decrease in owner's equity

C. a decrease in a liability

D.an increase in another asset

6.Amounts owed by a business are referred to as*

A.Assets

B.Equities

C.Liabilities

D.Expenses