accounting mcqs - Answer the following mulTple-choice...

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Answer the following multiple-choice questions a. The balance sheet equation can be defined as which of the following? 1. Assets + Stockholders’ Equity = Liabilities 2. Assets + Liabilities = Stockholders’ Equity 3. Assets = Liabilities – Stockholders’ Equity 4. Assets -Liabilities =Stockholders’ Equity 5. None of the above The balance sheet equation can be defined as Asset- Liabilities = Stockholders’ Equity. (the correct answer is choice 4) B. If assets are $40000 and Stockholders’ Equity is $10000, how are liabilities? 1. $30000 2. $50000 3. $20000 4. $60000 5. $10000 Liability = Assets- Stockholders’ equity. Therefore, liability = $40000-$10000 =$30,000 Therefore liability = $30,000 (the correct answer is choice 1) C. If assets are $10000 and liabilities are $ 40000, how much is Stakeholders equity? 1. $40000 2. $50000 3. $60000 4. $30000
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5. $140000 Stockholders’ equity = assets – liability Therefore stockholders’ equity = $10000 - $40000 = - $30000 Ignoring the negative sign, The Stockholders’ equity = $30000 ( the correct answer is choice 4) D. Which is a permanent account?
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