accounting mcqs

# 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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