Week 3 quiz.with answer.docx - Week 3 quiz- Financial...

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Week 3 quiz- Financial Statement1) The word "payable" always signifies a liability.
2) The accounting equation must always be in balance.
Diff: 13) Owners' equity is called stockholders' equity for a corporation.
Diff: 14) The accounting equation shows the relationship among assets, liabilities and net income.
5) Revenues are cash distributions to the stockholders.
8) The basic component of paid-in capital is common stock.
6) The calculation of ending retained earnings considers the beginning retained earnings,current period net income or net loss, and stockholders' equity.
7) Long-term debt is a liability that is payable beyond one year from the date of the financialstatements.
8) All of the following are expenses EXCEPT for:A) Cost of products and services.B) Depreciation Expense.C) Salary Expense.D) Dividends.Answer:D

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Term
Winter
Professor
NoProfessor
Tags
Balance Sheet, Income Statement, Generally Accepted Accounting Principles

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