P. Stevens Balance Sheet As at December 31, 2010 LIABILITIES ASSETS Capital 100 000 Premises 100 000 Bank loan 95 000 Accounts receivable 10 000 Creditors 5 000 Cash 5 000 Furniture 20 000 Stock 10 000 Bank 55 000 1. What is P. Steven's total non current asset? (A) $15 000 (B) $75 000 (C) $60 000 (D) $100 000 2. Which of the following would not be included on a balance sheet? (A) Equipment (B) Notes payable (C) Stockholder's equity (D) Revenue (E) None of above 3. Assets and equities of a company are $150,000 and $30,000, respectively. Determine owner's liability using the accounting equation. (A) $120,000 (B) $180,000 (C) $150,000 (D) $30,000 4. Identify the account below that is classified as a equity account: (A) Cash (B) Accounts Payable (C) Loans (D) Retained Earnings (E) Equipment 5. Cool Taste Company purchased $1,800 of supplies with cash. What effect does this transaction have on the accounting equation? (A) $1,800 decrease in assets and $1,800 increase in owner's equity (B) $1,800 decrease in assets and $1,800 increase in liabilities (C) $1,800 decrease in assets and $1,800 decrease in owner's equity. (D) None of the above 6. Which of the following equations properly represents a derivation of the fundamental accounting equation? (A) Assets - owner's equity = liabilities (B) Assets = owner's equity. (C) Cash = Liabilities (D) Owner's equity = Assets + liabilities 7. Which of these items would be accounted for as an expense? (A) Repayment of a bank loan. (B) Dividends to stockholders. (C) The purchase of land. (D) Payment of the current period's rent. L 8. Which of the following items are used to prepare a balance sheet? 1. The name of the firm II. The style use for the preparation of the statement III. The date it is being prepared IV. The name of the financial statement (A) I and III (B) I and IV (C)I, II and III (DI, III and IV 9. The statement that provides the financial position of a company as of a specific date is the (A) Statement of cash flows (B) Statement of owner's equity (C) Balance sheet (D) Income statement. 10. Which of the following are assets? I. Cash and cash at bank II. Mortgage loans and debtors III. Loans and creditors IV. Fixtures & Equipment (A) I and II (B)I and III (C)I and IV (D) II and