Ch 4 pretest on Word - Ch. 1-4, Pretest. 1. Profit is the...

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Ch. 1-4, Pretest. 1. Profit is the difference between: a. assets and liabilities b. assets and equities c. the assets purchased with cash contributed by the owner and the cash spent to operate the business d. the assets received for goods and services and the amounts used to provide the goods and services > d 2. Which of the following is not a business organization form? a. proprietorship b. operation c. partnership d. corporation > b 3. Resources owned by a business are referred to as: a. owner's equity b. liabilities c. equities d. assets > d 4. Assets are: a. financed by the owner and/or creditors b. a part of the accounting equation only after they are paid for c. the same as expenses because they are acquired with cash d. the same as net worth > a 5. The accounting equation may be expressed as: a. Assets = Equities - Liabilities b. Assets + Liabilities = Owner's Equity c. Assets = Liabilities + Owner's Equity d. Assets + Owner's Equity = Liabilities > c 6. A business paid $6,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to: a. increase one asset, decrease another asset b. increase an asset, increase a liability c. decrease an asset, decrease a liability d. increase an asset, increase owner's equity > c 7. The debt created by a business when it makes a purchase on account is referred to as a(n): a. account receivable b. account payable c. asset d. expense > b 8. Owner's withdrawals: a. increase assets b. increase expenses c. increase liabilities d. decrease owner's equity > d 9. How does the rendering of services on account affect the accounting equation? a. assets increase; liabilities increase b. assets decrease; owner's equity increases c. assets increase; owner's equity increases d. liabilities increase; owner's equity decreases > c
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10. If beginning capital was $85,000, ending capital is $75,000, and the owner's withdrawals were $15,000, the amount of net income or net loss was: a. net income of $5,000 b. net income of $15,000 c. net income of $20,000 d. net loss of $5,000 > a 11. Liabilities are reported on the:
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This note was uploaded on 10/22/2010 for the course BUSINESS BAIU09 taught by Professor Mr.ken during the Spring '10 term at American InterContinental University Dunwoody.

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Ch 4 pretest on Word - Ch. 1-4, Pretest. 1. Profit is the...

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