quiz

Chose correct answer

1. The ACE Company has five plants nationwide that cost $100 million. The current market value of the plants is $500 million. The plants will be recorded and reported as assets at
   

   $100 million.
   $400 million.
   $500 million.
   $600 million.

2. Liabilities
   are future economic benefits.
   are existing debts and obligations.
   possess service potential.
   are things of value used by the business in its operation.
   

3. If total liabilities decreased by $15,000 and owner’s equity increased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?
   $20,000 increase
   $10,000 decrease
   $10,000 increase
   $15,000 decrease
   

4. If total liabilities decreased by $15,000 and owner’s equity decreased by $5,000 during a period of time, then total assets must change by what amount and direction during that same period?
   $20,000 increase
   $10,000 increase
   $20,000 decrease
   $10,000 decrease
   

5. If total liabilities increased by $14,000 during a period of time and owner’s equity decreased by $6,000 during the same period, then the amount and direction (increase or decrease) of the period’s change in total assets is a(n)
   $14,000 increase.
   $20,000 increase.
   $8,000 decrease.
   $8,000 increase.
   

Fill in the Blank

1. Owner's equity is decreased by .
   

2. Liabilities of a company are owed to .
   

3. Accountants refer to an economic event as a .
   

4. A private accountant can perform many activities in a business organization but would not work in .
   

5. Keeping a systematic, chronological diary of events that are measured in dollars and cents is called .