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statement of owner's equity

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

capital increases, when the business has:

a)

owner contributions of capital

b)

a net loss (expenses exceed revenues)

c)

owner withdrawals of cash or other assets

d)

a net income (revenues exceed expenses)

2.

the net worth invested in the business by the owner

(a)  

3.

Sole Proprietorship

Business with: single ownership no sharing of profit and loss unlimited liability one man control

a)

single ownership

b)

no sharing of profit and loss

c)

limited liability

d)

one man control

4.

show the true statement

a)

relationship between the owner's equity and the rules of debit and credit:

debit increased

credit decreased

b)

the accounting equation for owner's equity:

+ capital

+ revenues - expenses

- withdrawals

c)

net income shows the changes in capital for a business entity during a time period, such as a month, quarter, or year

d)

debits, which decrease owner's equity, also decrease expenses

5.

choose the owner's investment

a)

performed a service and received a promise of payment

b)

took assets out of the business for personal use

c)

paid cash to an employee for services performed

d)

transferred assets to the business from a personal account

6.

if company has liabilities of $29000 and assets $66000, its owner's equity is:

(a)  

7.

how's your mood now?

a)
b)
c)
8.

the only difference in equity between a sole proprietorship and a partnership is

(a)  

9.

Retained Earnings account is sometimes called .................... because it

represents the stockholders’ claim to the assets that are earned from operations and reinvested in corporate operations.

a)

Net Earnings

b)

Operating Earnings

c)

Earned Capital

d)

Earned Cost

10.

if company has assets $83000 and liabilities of $34500, its owner's equity is:

(a)  

11.

Owner's equity:

2020 - $610 000

2021 - $640 000

increase: (a)   ?

12.

The equity section of a partnership’s balance sheet is called:

a)

partners’ equity

b)

owner's equity

c)

obligations