MCQS 24 The amount calculated by subtracting total liabilities from total assets is called ___ a)Equity b)Revenue c)Expenses d)None of above MCQS 25 Which of the following forms of business does not protect owners from business creditors? (a) Partnership (b) Sole proprietorship (c) Limited liability company (d) Both a and b MCQS 26 Which one of the following statement completely and correctly describes accounting? (a) Recording, classifying and summarizing economic activities in systematic way (b) Recording, classifying and summarizing all activities in useful manner (c) Accounting is the systematic process of recording social activities only (d) Recording, classifying and summarizing economic activities in informal manner MCQS 27 Purchased goods from Ahmed for cash should be credited to? (a) Account Payable _ Ahmed (b) Cash A/c (c) Purchases A/c (d) Account Receivable _ Ahmed MCQS 28 The payment of a liability causes an increase in owners' equity. a)True b)False MCQS 29 Unearned revenue is: a)An asset. b)Income. c)A liability. d)An expense. MCQS 30 Adama Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of $12,000 was recorded. During 2014, operating activities a)used net cash of $17,000. b)used net cash of $29,000. c)provided net cash of $24,000. d)provided net cash of $21,000
MCQS 24
The amount calculated by subtracting total liabilities from total assets is called ___
a)Equity
b)Revenue
c)Expenses
d)None of above
MCQS 25
Which of the following forms of business does not protect owners from business creditors?
(a) Partnership
(b) Sole proprietorship
(c) Limited liability company
(d) Both a and b
MCQS 26
Which one of the following statement completely and correctly describes accounting?
(a) Recording, classifying and summarizing economic activities in systematic way
(b) Recording, classifying and summarizing all activities in useful manner
(c) Accounting is the systematic process of recording social activities only
(d) Recording, classifying and summarizing economic activities in informal manner
MCQS 27
Purchased goods from Ahmed for cash should be credited to?
(a) Account Payable _ Ahmed
(b) Cash A/c
(c) Purchases A/c
(d) Account Receivable _ Ahmed
MCQS 28
The payment of a liability causes an increase in owners' equity.
a)True
b)False
MCQS 29
Unearned revenue is:
a)An asset.
b)Income.
c)A liability.
d)An expense.
MCQS 30
Adama Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and
a)used net cash of $17,000.
b)used net cash of $29,000.
c)provided net cash of $24,000.
d)provided net cash of $21,000
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
