4 Multiple choice questions

Question 37 (2 points)The excess of expenses over revenues for a period is:

a

A liability.

b

Net income.

c

Net loss.

d

Equity.

e

Net assets.

Question 38 (2 points)If assets are $109,000 and liabilities are $32,000, then equity equals:

a

$109,000.

b

$141,000.

c

$198,000.

d

$77,000.

e

$32,000.

Question 39 (2 points)The document that the purchasing department prepares and sends to the vendor to place an order is the

a

Purchase order.

b

Invoice approval.

c

Invoice.

d

Receiving report.

e

Purchase requisition.

Question 40 (2 points)The document, also known as the check authorization, that is a checklist of steps necessary for approving an invoice for approval and payments is the

a

Purchase requisition.

b

Invoice approval.

c

Receiving report.

d

Purchase order.

e

Invoice.