Question 1

The order of assets on the balance sheet is

Accepted Answer

Based on liquidity.

Answer

From lowest to highest $ amount.

Answer

From highest to lowest $ amount.

Answer

Alphabetical.

Question 2

Both creditors and owners have a claim on assets

Accepted Answer

true

Answer

false

Question 3

Which account reflects the money received when a company sells new shares of stock?

Accepted Answer

Common stock

Answer

Dividends

Answer

Inventory

Answer

Retained earnings

Question 4

Which financial statement is prepared first?

Accepted Answer

Income statement.

Answer

Statement of retained earnings.

Answer

Balance sheet.

Answer

Statement of cash flows.

Question 5

Which financial statement is as of a specific date, as opposed to for a period of time?

Accepted Answer

Balance sheet.

Answer

Income statement

Answer

Statement of cash flows.

Answer

Statement of retained earnings.

Question 6

The balance sheet reflects the accounting equation.

Accepted Answer

true

Answer

false

Question 7

Which of these is a liability account?

Accepted Answer

Unearned service revenue.

Answer

Salary and wages expense.

Answer

Dividends.

Answer

Accounts receivable.

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