101.Liabilities of a company would
not
include
a. notes payable.
b. accounts payable.
c. wages payable.
d. cash.
102.Liabilities of a company are owed to
a. debtors.
b. benefactors.
c. creditors.
d. underwriters.
103.Equity can be described as
a. creditorship claim on total assets.
b. ownership claim on total assets.
c. benefactor's claim on total assets.
d. debtor claim on total assets.
104.Equity is often referred to as
a. residual equity.
b. leftovers.
c. spoils.
d. second equity.
105.When assets are distributed to the shareholders of a corporation, these distributions are termed
a. depletions.
b. consumptions.
c. dividends.
d. a credit line.
106.A dividend is
a. a distribution of the company's earnings to its shareholders.
b. equal to liabilities minus equity.
c. equal to assets minus equity.
d. equal to revenues less expenses.
107.Revenues would
not
result from
a. sale of merchandise.
b. issuance of ordinary shares.
c. performance of services.
d. rental of property.
108.Sources of increases to equity are
a. issuance of shares.
b. purchases of merchandise.
c. dividends.
d. expenses.
109.The basic accounting equation
cannot
be restated as
a. Assets – Liabilities = Equity.
b. Assets – Equity = Liabilities.
c. Equity + Liabilities = Assets.
d. Assets + Liabilities = Equity.
110.Equity is decreased by all of the following except
a. issuance of shares.
b. dividends.
c. expenses.
d. net losses.