Accounting II Chapters 1-3

Examples of assets are:

• cash and accounts receivable.

• cash and revenue.

• investments by the owner and revenue.

• cash and rent expense

• all selections are correct

If during the year total assets increased by $75,000 and total liabilities decreased by $16,000, by how much did owner's equity increase/decrease?

• $91,000 increase

• $59,000 decrease

• $91,000 decrease

• $75,000 increase

When the owner invests cash in a business,

• assets and revenue increase.

• assets increase and owner's equity decreases.

• liabilities decrease and owner's equity increases.

• assets and owner's equity increase.

The rent paid for future months is a(n):

• asset.

• liability.

• expense.

• revenue.

The ending capital balance appears on which of the following statement(s)?

• Statement of Owner's Equity

• Income Statement

• Statement of Owner's Equity and Balance Sheet

• Statement of Owner's Equity and Income Statement