6. Shareholders equity equals Assets minus Liabilities. True/False

7. Accumulated depreciation and accrued liabilities are examples of contra accounts: True/False

8. Current assets include cash and other assets expected to be used within the greater of one year or one operating

cycle of the business: True/False

9. Changes in accounting estimates are accounted for retrospectively. True/ False

10. Indicate the natural / normal balance of each account as Debit (DR) or Credit (CR) or Not Applicable (NA) __ Cash __ Sales __ Inventory __ Accrued expenses __ Deferred revenue __ Interest expense __ Vendor relations expense __ Retained earnings __ Prepaid expenses __ Income taxes __ Gains from investments __ Cash flows from operations