For each item below, indicate to which category of elements of financial statements it belongs. (Asset, liabilities, equity, none of them) a. Retained earnings. c. Share Premium.   e. Depreciation.   g. Interest payable.   i. Gain on sale of investment. b. Sales.   d. Inventory.   f. Loss on sale of equipment.   h. Dividends. j. Issuance of ordinary shares.

. How does the issuance of common stock affect the accounting equation? a) Increases assets and decreases liabilities b) Increases assets and increases equity c) Increases assets and increases liabilities d) Increases liabilities and decreases equity

In a limited company which of the following is shown in the statement of changes in equity?     a.   Loan note interest and dividends     b. Dividends paid and transfer to reserves     c. Transfer to reserves and loan note interest     d. Directors remuneration and Dividends paid

The date on which liability for dividends must be recorded. *         a. Date of payment       b. Date of record       c. Declaration date       d. Date of issuance

Stockholders' equity consists of which of the following? Multiple Choice Paid-in (or contributed) capital and retained earnings. Retained earnings and cash. Long-term assets. Paid-in (or contributed) capital and par value. Premiums and discounts. k

Which one of the following normally has a net debit balance? A. Contributed capital that is in shareholders’ equity.   B. Retained earnings that is in shareholders’ equity. C. Dividends that decrease retained earnings Revenues that increase retained earnings.   D. Revenues that increase retained earnings

Which financial statement is associated with each of the descriptions below? a. Operating activities, investing activities, and financing activities b. Assets, liabilities, and stockholders’ equity c. Revenues and expenses d. Net income, dividends, and beginning retained earnings

Stockholders' equity a.is shown on the income statement b.is usually equal to cash on hand c.includes paid-in capital and liabilities d.includes retained earnings and paid-in capital

The two main categories of stockholders’ equity area. assets and liabilities.b. retained earnings and common stock.c. common stock and preferred stock.d. retained earnings and paid-in capital

Owner’s equity represents which of the following? a. the total of retained earnings plus paid-in capital b. the sum of the retained earnings and accounts receivable account balances c. the business owner’s/owners’ share of the company, also known as net worth or net assets d. the amount of funding the company has from issuing bonds