Cash is received from a client for office rental space.

cash increases and rental fees earned increases

Which of the following statements is true?

a salary paid to a shareholder is an expense of the corporation

The investment of cash into the business results in a/an

increase in cash and an increase in capital

What is the order of Equity in the Statement of Financial Position?

Opening Capital,Profit for the Year,Drawings,Closing Capital

Services rendered for cash will result in a/an

increase in cash and an increase in fees earned

A sole proprietor recorded the payment of an account payable to an office supplies store. Recording the transaction will

decrease an asset, decrease a liability

To improve one's net worth a person should

Increase Assets & Decrease Liabilities

The purchase of supplies for cash will result in a/an

increase in supplies and a decrease in cash

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Statement of Financial Position Quiz #2

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#FABM2 #Balance Sheet #Statement of Financial Position

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Questions 20

Answers

1
An event that can be measured in terms of money and which affects the financial position
Business
Business Payment
Business Transactions
Business Trans
2
Cash is received from a client for office rental space.
cash increases and rental fees earned increases
cash decreases and withdrawals increases
cash increases and rental fees earned decreases
cash decreases and capital increases
3
Which of the following statements is true?
a salary paid to a shareholder is an expense of the corporation
the business entity principle does not apply to corporations
a salary paid to a proprietor is an expense to the proprietorship
a salary paid to a partner is an expense to the partnership
4
The investment of cash into the business results in a/an
increase in cash and a decrease in capital
increase in fees earned and an increase in capital
decrease in cash and an increase in capital
increase in cash and an increase in capital
5
This is an example of a(n) _________ asset
Monetary
Personal
Tangible
Investment
6
What is the order of Equity in the Statement of Financial Position?
Closing Capital,Profit for the Year,Drawings,Opening Capital
Opening Capital,Drawings,Profit for the Year,Closing Capital
Opening Capital,Profit for the Year,Drawings,Closing Capital
Profit for the year,Opening Capital,Drawings,Closing Capital
7
Services rendered for cash will result in a/an
decrease in cash and an increase in fees earned
increase in cash and an increase in fees earned
increase in cash and a decrease in capital
increase in fees earned and an decrease in capital
8
A sole proprietor recorded the payment of an account payable to an office supplies store. Recording the transaction will
decrease an asset, decrease a liability
decrease an asset, decrease owner's equity
increase an asset, increase a liability
increase an asset, increase owner's equity
9
Assets total $50,000 and Liabilities total $10,000. The equity of the business must total
$400
$40,000
$4,000
$40
10
What order are liabilities listed in the Statement of Financial Position?
The order they would be repaid
Alphabetical
Smallest to largest
Largest to smallest
11
Which of the following accounts is NOT a liability?
Accounts Receivable
Accounts Payable
Salaries Payable
Notes Payable
12
The resulting amount when total liabilities are subtracted from total assets is known as
total revenue
total expenses
owner's equity or net assets
net income or net loss
13
What part of COGS is also recorded on the Statement of Financial Position?
Expenses
Purchases
Asset
Inventory
14
The financial position of the business on a given date is reported on the
Statement of Changes In Owner's Equity
Balance Sheet
Statement of Cash Flows
Income Statement
15
What order are assets listed in the Statement of Financial Position?
Smallest to largest
Order of liquidity
Alphabetical
Largest to smallest
16
Which of the following would not appear in the Statement of Financial Position?
Accounts Receivable
Stationery
Mortgage
Net Profit
17
The net profit or loss for a particular period of time is reported on the
Statement of Changes In Owner's Equity
Income Statement
Balance Sheet
Trial Balance
18
To improve one's net worth a person should
Increase Assets & Increase Income
Decrease Assets
Decrease Assets & Increase Liabilities
Increase Assets & Decrease Liabilities
19
The purchase of supplies for cash will result in a/an
increase in supplies and a decrease in cash
increase in cash and an increase in supplies
increase in cash and a decrease in capital
increase in equipment and an increase in capital
20
How often is it recommended to create a statement of financial position?
once a month
never
once a year
twice a year

Statement of Financial Position Quiz #2 Flashcards | StudBud