121.If assets are $300,000 and liabilities are $192,000, then equity equals:
A.$108,000.
B.$192,000.
C.$300,000.
D.$492,000.
E.$792,000.
Assets = Liabilities + Stockholders' Equity
Equity = $300,000 - $192,000 = $108,000
122.Resources a company owns or controls that are expected to yield future benefits are:
A.Assets.
B.Revenues.
C.Liabilities.
D.Stockholders' Equity.
E.Expenses.
123.Increases in equity from a company's sales of products or services are:
A.Assets.
B.Revenues.
C.Liabilities.
D.Stockholders' Equity.
E.Expenses.
124.The difference between a company's assets and its liabilities, or net assets is:
A.Net income.
B.Expense.
C.Equity.
D.Revenue.
E.Net loss.
125.Creditors' claims on the assets of a company are called:
A.Net losses.
B.Expenses.
C.Revenues.
D.Equity.
E.Liabilities.
126.Decreases in equity that represent costs of providing products or services to customers, used to earn revenues are called:
A.Liabilities.
B.Equity.
C.Dividends.
D.Expenses.
E.Common Stock.
127.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.
128.Revenues are:
A.The same as net income.
B.The excess of expenses over assets.
C.Resources owned or controlled by a company.
D.The increase in equity from a company's sales of products and services.
E.The costs of assets or services used.
129.If assets are $99,000 and liabilities are $32,000, then equity equals:
A.$32,000.
B.$67,000.
C.$99,000.
D.$131,000.
E.$198,000.
Assets = Liabilities + Stockholders' Equity
$99,000 = $32,000 + Stockholders' Equity; Stockholders' Equity = $67,000
130.Another name for equity is:
A.Net income.
B.Expenses.
C.Net assets.
D.Revenue.
E.Net loss.