Total assets are decreased but liabilities and

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Total assets are decreased, but liabilities and stockholders’ equity remain the same.D.There is no change in total assets, liabilities, or stockholders’ equity.E.There is no change in any of the balance sheet items.Answer Key: D
Question 5 of 10 10.0/ 10.0 PointsLiabilities represent things of value owned by the business and are also known as resources.
Question 6 of 10 10.0/ 10.0 PointsThe return of defective equipment to the supplier before it is paid for would:
Question 7 of 10 10.0/ 10.0 PointsThe equity ratio is equal to stockholders’ equity divided by total assets.
Question 8 of 10 10.0/ 10.0 PointsAssets are generally recorded at cost because this amount is the objective price determined in theexchange process.A. TrueB. FalseAnswer Key: True
Question 9 of 10 10.0/ 10.0 PointsFor an exchange to occur that is recorded as a transaction in the accounting records, both sides of theaccounting equation must be affected.
Question 10 of 10 10.0/ 10.0 PointsEach partner may be held liable for the actions of other partners when they are acting within the scopeof the business.
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Term
Winter
Professor
Natalya Snow
Tags
Accounting, Balance Sheet, Generally Accepted Accounting Principles

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