Question 1

What is an asset?

Accepted Answer

Something owned or controlled by a company.

Answer

Money owed by a company

Answer

The owner's investment a company.

Question 2

A company car is classified as a company's ???

Accepted Answer

Asset

Answer

Liability

Answer

Owner's Equity

Question 3

Checks from customers, coins, currency, money in the bank are all considered to be a company's cash account.  Cash is a(n) ????

Accepted Answer

Asset

Answer

Owner's Equity

Answer

Liability

Question 4

Classify the following item as an Asset, Liability, or Owner's Equity:   Tools

Accepted Answer

Asset

Answer

Owner's Equity

Answer

Liability

Question 5

Debts of a company are classified as  ????

Accepted Answer

Liabilities

Answer

Assets

Answer

Owner's Equity

Question 6

What is Owner's Equity?

Accepted Answer

The owner's investment in the business.

Answer

The owner's loans to a business.

Answer

The Assets + Liabilities = Owner's Equity

Question 7

What is the accounting equation?

Accepted Answer

Assets = Liabilities + Owner's Equity

Answer

Assets = Liabilties - Owner's Equity

Answer

Assets + Liabilities = Owner's Equity

Question 8

How does the accounting equation change with the following transaction?   Jennifer invested $10,000 to start her new business.

Accepted Answer

Assets increase & Owner's Equity increases

Answer

Assets increase & Owner's Equity decreases

Answer

Assets decrease & Owner's Equity decreases

Question 9

How does the accounting equation change with this transaction?    Paid off a debt.

Accepted Answer

Assets decrease & Liabilities decrease

Answer

Assets decrease & Liabilities increase

Answer

Assets increase & Liabilities decrease

Answer

Liabilities decrease & Owner's Equity increases

Question 10

Paid for a new computer.

Accepted Answer

Assets increase & Assets decrease

Answer

Liabilities increase & Assets decrease

Answer

Assets decrease & Liabilities decrease

Related quizzes