Grand Quiz C

Liabilities normally show

• credit balances

• debit balances

• debit and credit balances

• debit or credit balance

The normal balance of any account is the

• left side

• right side

• side which increases that account

• side which decreases that account

A Co. purchased land for $ 5000 in 2010.At Dec. 31, 2020,fair value of the land is $6,500. the land will be reported at

• $6,500 on the statement of financial position

• $5,000 on the statement of financial position

• $5,000 on the income statement

• $6,500 on the income statement

In recording an accounting transaction in a double-entry system

• the number of debit accounts must equal the number of credit accounts

• there must always be entries made on both sides of the accounting equation

• the amount of the debits must equal the amount of the credits

• there must only be two accounts affected by any transaction

f total liabilities decreased by $300 & equity increased by $50 during a period then total assets must change by

• $300 increase

• $250 decrease

• $350 increase

• $400 increase

The assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is:

• stand alone concept

• monetary unit assumption

• corporate form of ownership

• economic entity assumption

The double-entry system requires that each transaction must be recorded

• in at least two different accounts

• in two sets of books

• in a journal and in a ledger

• first as a revenue and then as an expense

Sources of decreases to equity are

• issuance of shares

• purchases of merchandise

• notes payable

• expenses

Assets=$17,400, liabilities=$6,200, share capital=$4,400 & retained earnings=$6,800. Equity?

• $4,400

• $3,750

• $4,400

• $11,200

Which one of the following represents the expanded basic accounting equation?

• Assets=Liabilities + Share Capital + Retained Earnings + Dividends –Revenue

• Assets + Dividend + Expense = Liabilities + Share Capital + Retained Earning + Revenue

• Assets – Liabilities –Dividend = Share Capital + Retained Earning + Revenues–Expense

• Assets = Revenues + Expenses – Liabilities