Solved by verified expert :119. 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.
120. Creditors’
claims on the assets of a company are called:
A. Net
losses.
B. Expenses.
C. Revenues.
D.
Equity.
E. Liabilities.
1-21
Chapter
01 – Accounting in Business
123.
Decreases in equity that
represent costs of assets or services used to earn revenues are called:
A. Liabilities. B. Equity.
C. Withdrawals. D. Expenses.
E.
Owner’s Investment.
124. 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.
125. 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 earning activities.
E. The
costs of assets or services used.
126.
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.
1-22
Chapter
01 – Accounting in Business
127.
Another name for equity
is: A. Net income.
B. Expenses. C. Net
assets. D. Revenue. E. Net loss.
128.
The excess of expenses
over revenues for a period is: A. Net assets.
B.
Equity. C. Net loss.
D. Net income. E. A
liability.
129. A
payment to an owner is called a(n):
A. Liability.
B.
Withdrawal.
C. Expense.
D. Contribution.
E. Investment.
130.
Distributions of assets by a business to its owners are called:
A. Withdrawals.
B. Expenses.
C. Assets.
D.
Retained earnings.
E. Net
Income.
