If total liabilities increased by 45,000 and equity increased by 10,000 during a period of time, then total assets must change by what amount and direction during that same period?

35,000 decrease

35,000 decrease

55,000 decrease

55,000 decrease

35,000 increase

35,000 increase

55,000 increase

55,000 increase

Question 2

A dividend is

a distribution of the company's earnings to its shareholders.

a distribution of the company's earnings to its shareholders.

equal to liabilities minus equity.

equal to liabilities minus equity.

equal to assets minus equity.

equal to assets minus equity.

equal to revenues less expenses.

equal to revenues less expenses.

Question 3

Liabilities

possess service potential.w

possess service potential.w

are existing debts and obligations.

are existing debts and obligations.

are future economic benefits.

are future economic benefits.

are things of value used by the business in its operation.

are things of value used by the business in its operation.

Question 4

Equity is best depicted by the following:

Liabilities + Assets.

Liabilities + Assets.

Assets = Liabilities.

Assets = Liabilities.

Residual equity + Assets.

Residual equity + Assets.

Assets Liabilities.

Assets Liabilities.

Question 5

During 2017, its first year of operations, Yaspos Bakery had revenues of 200,000 and expenses of 110,000. The business paid dividends of 60,000. What is the amount of equity at December 31, 2017?

0

0

90,0000

90,0000

60,000

60,000

30,0000

30,0000

Question 6

The common characteristic possessed by all assets is

future economic benefit.

future economic benefit.

long life.

long life.

tangible nature.

tangible nature.

great monetary value.

great monetary value.

Question 7

The assumption that enables accounting to quantify (measure) economic events is the

monetary unit assumption.

monetary unit assumption.

economic entity assumption.

economic entity assumption.

cost principle.

cost principle.

historical cost principle.

historical cost principle.

Question 8

The partnership form of business organization

is a separate legal entity.

is a separate legal entity.

enjoys an unlimited life.

enjoys an unlimited life.

has limited liability.

has limited liability.

is a common form of organization for service-type businesses

is a common form of organization for service-type businesses

Question 9

The economic entity assumption requires that the activities

must be reported to the Securities and Exchange Commission.

must be reported to the Securities and Exchange Commission.

of a sole proprietorship cannot be distinguished from the personal economic events of its owners.

of a sole proprietorship cannot be distinguished from the personal economic events of its owners.

of an entity be kept separate from the activities of its owner.

of an entity be kept separate from the activities of its owner.

of different entities can be combined if all the entities are corporations.

of different entities can be combined if all the entities are corporations.

Question 10

Most assets should be valued at cost because fair values

may not be representationally faithful.

may not be representationally faithful.

are not useful for decision-making.

are not useful for decision-making.

may be higher or lower than historical cost.

may be higher or lower than historical cost.

are not relevant.