Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-23 Summary of Transactions
88. If assets are $144,000 and liabilities are $37,000, then equity equals
A. $37,000
B. $74,000
C. $107,000
D. $144,000
E. $181,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-21 The Accounting Equation
89. The assets of a business total $20,000; the liabilities, $8,000. The claims of the owners are
A. $0
B. $8,000
C. $12,000
D. $20,000
E. $28,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-21 The Accounting Equation
90. The FastForward Company balance sheet shows cash $5,000, accounts receivable $7,000, office equipment $3,000, and accounts payable $4,000. What is the amount of equity?
A. $1,00
B. $11,000.
C. $12,000
D. $15,000
E. $19,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
91. If assets are $175,000 and equity is $47,000, then liabilities equal
A. $47,000
B. $128,000
C. $175,000
D. $204,000
E. $222,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-21 The Accounting Equation
92. The following information is available for Isla Company for the month of May. How much is the profit for the month?
Employee salaries
$15,000
Interest paid on bank loan
2,500
Rent paid to landlord
12,500
Service Revenue
50,000
A. $0
B. $10,000
C. $20,000
D. $30,000
E. $35,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-23 Summary of Transactions
93. Reese's Company reported equity of $22,000 on its December 31, 2019 balance sheet. The following information is available for the year ended December 31, 2020
Revenues
$73,000
Expenses
59,000
Liabilities
11,000
What are the total assets of Reese's Company on December 31, 2020?
A. $14,000
B. $25,000
C. $35,000
D. $47,000
E. $57,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Hard
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-23 Summary of Transactions
94. If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, the land should be recorded in the purchaser's books at
A. $20,000
B. $34,000
C. $36,000
D. $45,000
E. $54,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
95. If equity is $30,000 and liabilities are $73,000, then assets equal
A. $30,000
B. $40,000
C. $60,000
D. $73,000
E. $103,000
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Easy
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-21 The Accounting Equation
96. From the following information taken from the records of Peach Company at December 31 of this year, calculate equity.
Liabilities
$1,000
Cash
3,000
Accounts Receivable
2,000
Buildings
3,500
Equity
?
A. $1,500