Shareholder's Equity is defined as the amount invested by Equity shareholders in exchange of company stocks.
Shareholder's Equity in total is sum of Common Stock outstanding plus Retained earnings.
These are the owners of Total Assets.
4 of 15 MULTIPLE CHOICE Stockholders' equity can be described as claims of owners on total...
How are creditor and investor claims reported on a balance sheet? Multiple Choice The claims of both creditors and investors are liabilities, but only the claims of investors are considered to be long- term. The claims of creditors are reported as liabilities while the claims of investors are recorded as stockholders' equity. The claims of creditors are liabilities and those of investors are assets. The claims of creditors and investors are considered to be essentially equivalent.
The amount of owners' equity in a business is not affected by: Multiple Choice The percentage of total assets held in cash. The investments made in the business by the owner. The amount of dividends paid to stockholders. The profitability of the business.
Claims to economic resources” are known as Assets and liabilities Liabilities and stockholders’ equity Owners’ equity and stockholders’ equity Retained earnings and revenues
Which of the following is a true statement? Multiple Choice Expenses increase owners’ equity and decrease liabilities. Revenue decreases owners’ equity and expenses increase owners’ equity. Revenue increases owners’ equity and expenses decrease owners’ equity. Revenue decreases owners’ equity and increases liabilities. Which of the following statements is not true regarding the adoption of ASC Topic 606 guidance for revenue recognition? Multiple Choice When using the cumulative approach, the prior three years of financial statements need to be restated. Under...
The equity section of a balance sheet represents the claims of the creditors and the owners of a firm. True False
The accounting equation is defined as: Multiple Choice Assets = Liabilities - Stockholders' Equity. Net Income = Revenues - Expenses. Assets = Liabilities + Stockholders' Equity. Liabilities + Revenues - Assets.
Which statement is true about a stock split? Multiple Choice A change in total stockholders' equity depends upon whether it is a 2-for-1 split or a 3-for-1 split. Total shareholders' equity decreases. Total shareholders' equity increases. Total shareholders' equity remains the same.
a. MULTIPLE CHOICE QUESTIO 1. Accountants refer to an economic event as a a. purchase. b. sale. transaction. d. change in ownership 2. The starting point of the accounting process is a. communicating information to users. b. identifying economic events. recording economic events. d. None of these answers are correct. 3. Communication of economic events is the part of the accounting process that involves identifying economic events. b. quantifying transactions into dollars and cents. preparing accounting reports. d. recording and...
If supplies are purchased for cash: Multiple Choice total assets will decrease. total assets will increase. stockholders' equity will increase. total assets will remain the same.
Which of the following requires a credit? Multiple Choice Decreases in liabilities Decreases in stockholders' equity Increases to assets Increases to liabilities 2. true or false Under the five-step revenue recognition model, a contract can be written, verbal, or implied. 3.When cash is received in advance of a performance obligation being satisfied, a(n) ______ called _________ is recorded.