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Self Quiz
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1

Which of the following is not a section of the statement of cash flows?
A)Operating activities
B)Financing activities
C)Investing activities
D)Cashing activities
2

Assets should be recorded at the price paid for the asset according to the:
A)Stable-dollar assumption
B)Cost principle
C)Objectivity principle
D)Going-concern assumption
3

Which is the correct accounting equation?
A)Assets = liabilities + Owners' equity
B)Assets = liabilities - Owners' equity
C)Assets + liabilities = Owners' equity
D)Assets = liabilities - Owners' equity + profits
4

Which of the following is not an asset?
A)Capital stock
B)Accounts receivable
C)Land
D)Building
5

Which of the following is not a liability?
A)Accounts payable
B)Accounts receivable
C)Notes payable
D)Mortgage payable
6

Net income is the difference between:
A)Assets and liabilities
B)Cash and liabilities
C)Revenues and expenses
D)Cash and expenses
7

If cash decreased in a given year:
A)There must be a net loss
B)Owners' equity must have decreased
C)A and B are both true
D)A and B are both false
8

Which form of enterprise will have retained earnings on its balance sheet?
A)Sole proprietorship
B)Partnership
C)Corporation
D)All three
9

Which form of enterprise has limited liability?
A)Sole proprietorship
B)Partnership
C)Corporation
D)All three
10

Which form of enterprise has the best ability to bring together large amounts of capital from multiple owners?
A)Sole proprietorship
B)Partnership
C)Corporations
D)Corporations and partnerships would have the same ability





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