6120 - Rana Mahmoud Abd El-Moneim Derbala
6120 - Rana Mahmoud Abd El-Moneim Derbala
6120 - Rana Mahmoud Abd El-Moneim Derbala
TRUE-FALSE STATEMENTS
T or F
1.Owners of business firms are the only people who need accounting False
information.
2.Transactions that can be measured in dollars and cents are recorded in True
the financial information system.
4. The basic accounting equation is in balance when the creditor and True
ownership claims against the business equal the assets.
7. George and Ringo met at law school and decide to start a small law
practice after graduation. They agree to split revenues and expenses
evenly. The most common form of business organization for a
business such as this would be a
a. joint venture.
b. partnership.
c. corporation.
d. proprietorship.
.
10. A net loss will result during a time period when
a. liabilities exceed assets.
b. drawings exceed investments.
c. expenses exceed revenues.
d. revenues exceed expenses.
11. If total liabilities decreased by $25,000 and owner’s equity increased
by $5,000 during a period of time, then total assets must change by
what amount and direction during that same period?
a. $20,000 decrease
b. $20,000 increase
c. $25,000 increase
d. $30,000 increase
12. As of June 30, 2009, Dallas Company has assets of $100,000 and
owner’s equity of $5,000. What are the liabilities for Dallas Company
as of June 30, 2009?
a. $85,000
b. $90,000
c. $95,000
d. $100,000