Question : 131.When expenses exceed revenues, the resulting change in equity is: A.Net : 1258290

 

 

131.When expenses exceed revenues, the resulting change in equity is:   

A.Net assets.

 

B.Negative equity.

 

C.Net loss.

 

D.Net income.

 

E.A liability.

 

 

 

 

132.A resource that the stockholder receives from the company is called a(n):   

A.Liability.

 

B.Dividend.

 

C.Expense.

 

D.Common stock.

 

E.Investment.

 

 

 

 

133.Distributions of cash or other resources by a business to its stockholders are called:   

A.Dividends.

 

B.Expenses.

 

C.Assets.

 

D.Retained earnings.

 

E.Net Income.

 

 

 

 

134.The assets of a company total $700,000; the liabilities, $200,000. What are the net assets?   

A.$900,000.

 

B.$700,000.

 

C.$500,000.

 

D.$200,000.

 

E.It is impossible to determine unless the amount of the common stock is known.

Assets = Liabilities + Stockholders’ Equity$700,000 = $200,000 + Stockholders’ Equity (or Claims of the Stockholders); Stockholders’ Equity = $500,000

 

 

 

135.On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of stockholders’ equity as of May 31 of the current year?    

A.$8,300

 

B.$13,050

 

C.$20,500

 

D.$31,100

 

E.$40,400

Assets = Liabilities + Stockholders’ Equity Cash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Stockholders’ Equity $20,500 + $7,250 + $650 + $12,000 = $9,300 + Stockholders’ Equity $40,400 = $9,300 + Stockholders’ Equity; Stockholders’ Equity = $31,100

 

 

 

136.On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of stockholders’ equity as of August 31 of the current year?    

A.$49,100

 

B.$32,100

 

C.$12,100

 

D.$10,900

 

E.$30,900

Assets – Liabilities = Stockholders’ Equity Cash + Supplies + Equipment – Accounts Payable = Stockholders’ Equity $30,000 + $600 + $10,000 – $8,500 = $32,100

 

 

 

137.Assets created by selling goods and services on credit are:   

A.Accounts payable.

 

B.Accounts receivable.

 

C.Liabilities.

 

D.Expenses.

 

E.Equity.

 

 

 

 

138.An exchange of value between two entities that yields a change in the accounting equation is called:   

A.The accounting equation.

 

B.Recordkeeping or bookkeeping.

 

C.An external transaction.

 

D.An asset.

 

E.Net Income.

 

 

 

 

139.Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?   

A.Assets, $30,000 increase; equity, $30,000 increase.

 

B.Assets, $30,000 decrease; liabilities, $30,000 decrease.

 

C.Assets, $30,000 decrease; liabilities, $30,000 increase.

 

D.Liabilities, $30,000 decrease; equity, $30,000 increase.

 

E.Assets, $30,000 decrease; equity $30,000 decrease.

Assets = Liabilities + Stockholders’ EquityAssets would decrease by $30,000 in Cash due to the payment of the accounts payable.Liabilities would also decrease by $30,000 in Accounts Payable due to the payment of an obligation. There is no effect on Stockholders’ Equity.

 

 

 

140.If Houston Company billed a client for $10,000 of consulting work completed, the accounts receivable asset increases by $10,000 and:    

A.Accounts payable decreases $10,000.

 

B.Accounts payable increases $10,000.

 

C.Cash increases $10,000.

 

D.Revenue increases $10,000.

 

E.Revenue decreases $10,000.

 

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more