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AC7 - 5 If cash is $2000 equipment is $5000 accounts...

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1. Financial accounting focuses on the specific needs of ___________ decision makers. Your Answer: External Good choice 2. The balance sheet equation is: Your Answer: Assets = Liabilities + Owners' equity Good choice 3. If inventory is purchased for cash, owners' equity will: Your Answer: Remain the same 4. If inventory is purchased on account, owners' equity will:--This is very similar to question #3 Your Answer: Remain the same
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Unformatted text preview: 5. If cash is $2000; equipment is $5000; accounts payable is $1500, how much is owners' equity? Your Answer: $5,500 6. If owners' equity is $4000; equipment is $5000; accounts payable is $500, how much is cash? Your Answer: Some other amount Same note as above Correct Answer: $500 A = L + OE 7. If total assets increase: Your Answer: Owners' equity and/or liabilities must increase...
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