Total assets are decreased but liabilities and

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 Points
Liabilities represent things of value owned by the business and are also known as resources.
Question 6 of 10 10.0/ 10.0 Points
The return of defective equipment to the supplier before it is paid for would:

Question 7 of 10 10.0/ 10.0 Points
The equity ratio is equal to stockholders’ equity divided by total assets.
Question 8 of 10 10.0/ 10.0 Points
Assets are generally recorded at cost because this amount is the objective price determined in the
exchange process.
A. True
B. False
Answer Key: True
Question 9 of 10 10.0/ 10.0 Points
For an exchange to occur that is recorded as a transaction in the accounting records, both sides of the
accounting equation must be affected.
Question 10 of 10 10.0/ 10.0 Points
Each partner may be held liable for the actions of other partners when they are acting within the scope
of the business.