This file comprises XBCOM 275 Entire Course A+ Study Guide Business - Accounting 1. Creditors' claims on the assets of a company are called: Net losses Expenses Revenues Equity Liabilities

2. Which of the following elements are found on the Balance Sheet? Service Revenue Net Income Operating Activities Utilities Expense Retained Earnings

3. Assets created by selling goods and services on credit are: Accounts payable Accounts receivable Liabilities Expenses

4. The description of the relation between a company's assets, liabilities and equity, which is expressed as + Equity is known as the: Income statement equation Accounting equation Business equation Return on equity ratio Net income

5. An example of an operating activity is: Paying wages Purchasing office equipment Borrowing money from a bank Selling stock Paying off a loan

6. Of the following accounts, the one that normally has a credit balance is: Cash Office Equipment Sales Salaries Payable Dividends Sales Salaries Expense

7. Reebok had income of $150 million and average assets of $1,800 million. Its return on assets is: 8.33% 83.3% 12.0% 120%

8. If Beginning Retained Earnings was $184,300, the company distributed $46,000 in dividends and Ending Retained Earnings was $345,000, what was the net income for the period? $154,700 $206,700 $114,700 $575,300 $160,700

9. Ethical behavior requires: That an auditors' pay not depend on the figures in the client's reports Auditors to invest in businesses they audit Analysts to report information favorable to their companies Managers to use accounting information to benefit themselves That an auditor provides a favorable opinion

10. A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000 and purchased for $137,000. The land