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