TLE 10 SEATWORK 4.2

Which of the following is an example of a current asset?

• Accounts Payable

• Equipment

• mortgage debt

• Bank Loan

Which section of the balance sheet lists the company's debts and obligations?

• Assets

• Liabilities

• Owner's Equity/proprietorship

• Revenue

Which of the following is considered a fixed asset?

• Cash

• Office Supplies

• Land

• Accounts Receivable

If a company has assets worth $100,000 and liabilities of $40,000, what is the owner's equity or proprietorship?

• $60,000

• $100,000

• $40,000

• $140,000

Which of these is NOT an asset?

• Cash

• Accounts Payable

• Accounts Receivable

• Equipment

The accounting equation states that:

• Assets + Liabilities = Equity or proprietorship

• Assets = Liabilities + Equity or proprietorship

• Liabilities = Assets + Equity or proprietorship

• Equity or proprietorship = Liabilities + Assets

Which of the following is classified as a current liability?

• Buildings

• Accounts Payable

• Machinery

• Retained Earnings

Which of the following would appear in the liabilities section of the balance sheet?

• Prepaid Expenses

• Retained Earnings

• Bank Loan

• Goodwill

What happens if total assets do not equal total liabilities and owner's equity?

• The company is profitable

• There is an error in the balance sheet

• The company has no liabilities

• The company has no equity

If a business purchases new equipment on credit, how does this affect the balance sheet?

• Increases assets and increases liabilities

• Increases assets and decreases equity/ proprietorship

• Decreases assets and decreases liabilities

• No effect on the balance sheet