101. Creditors' claims on the assets of a company are called:
A. Net losses
B. Expenses
C. Revenues
D. Equity
E. Liabilities
102. Decreases in retained earnings that represent costs of assets or services that are used to earn revenues are called:
A. Liabilities
B. Equity
C. Withdrawals
D. Expenses
E. Contributed capital
103. The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:
A. Income statement equation.
B. Accounting equation.
C. Business equation.
D. Return on equity ratio.
E. Net income.
104. Expenses:
A. Increase retained earnings.
B. Are increases in retained earnings from a company's earning activity.
C. Are the costs of assets or services used to earn revenues.
D. Occur when retained earnings exceed revenue.
E. Are creditors' claims on assets.
105. Net income:
A. Occurs when revenues exceed expenses.
B. Is the same as revenue.
C. Equals resources owned or controlled by a company.
D. Occurs when expenses exceed assets.
E. Represents assets taken from a company for an owner's personal use.
106. Revenues are:
A. The same as net income.
B. The excess of expenses over assets.
C. Resources owned or controlled by a company.
D. Increases in retained earnings from a company's earning activities.
E. The costs of assets or services used.
107. If liabilities are $51,500 and assets are $173,425, then equity equals:
A. $224,925
B. $51,500
C. $173,425
D. $121,925
E. $103,000
108. Another name for equity is:
A. Net income
B. Expenses
C. Net assets
D. Revenue
E. Net loss
109. Which of the following statements is not true about assets?
A. They are economic resources owned or controlled by the business.
B. They are expected to provide future benefits to the business.
C. They appear on the balance sheet.
D. They appear on the statement of retained earnings.
E. Claims on them are shared between creditors and owners.
110. The distribution of assets to stockholders is called a(n):
A. Liability
B. Dividend
C. Expense
D. Contribution
E. Investment